Pharma industry seeks relief from price cap rule for cheap drugs
pharmaceutical industry has sought exemption from the government on fixation of ceiling prices for all low-priced formulations or those that are priced at up to ₹5 per unit. At a meeting last week, the Federation of Pharma Entrepreneurs (FoPE) lobby group also asked for the exemption of patented drugs from price control for 10 years instead of the existing five. According to FoPE, in the absence of a 10-year exemption, many companies are conducting research outside the country.
«All formulations sold at ₹5 per unit i.e. per tablet, capsule, ml, gm may be exempted from provisions of ceiling price,» FOPE said in its presentation to the secretary, department of pharmaceuticals (DoP). «The industry has been asking for this exemption for a long time. It would be desirable to allow...small manufacturing units to be kept outside the Drug Price Control Order (DPCO) provisions,» said a person in the know. Earlier, the Indian Pharmaceutical Alliance (IPA), which represents the country's biggest drug manufacturing companies, along with other lobby groups had asked for exemptions from price ceiling regulations for low-priced formulations.
The National Pharmaceutical Pricing Authority (NPPA) fixes the ceiling price of essential Schedule I drugs under the DPCO.
According to FOPE, the industry has been battling rising input costs. Over the past few years, the prices of some key active pharmaceutical ingredients have increased 15-130%, experts said.
«Suitable price revision of ceiling prices may be considered due to statutory
