Category Archives: Price Control

Draft Pharmaceutical Policy, 2017

The Department of Pharmaceuticals has circulated a Draft Pharmaceutical Policy, 2017 which can be accessed here.

The draft policy identifies the following key objectives:

a. Making essential drugs accessible at affordable prices to the common masses;

b. Providing a longer term stable policy environment for the pharmaceutical sector;

c. Making India sufficiently self-reliant in end to end indigenous drug manufacturing;

d. Ensuring world class quality of drugs for domestic consumption & exports;

e. Creating an environment for R&D to produce innovator drugs

It addresses a range of issues including indigenous production of API, quality control and regulatory approval, manufacturing arrangements, foreign direct investment, innovation and R&D and intellectual property. A major portion of the draft is devoted to pricing and makes various recommendations for the re-structuring of the NPPA and changes to the DPCO. 

A conference on the draft pharmaceutical policy is being organised by the Department of Pharmaceuticals on August 30 where various Ministries are expected to present relevant aspects of the policy to stakeholders for feedback. 

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Pharma Price Control Policy: Unrealistic and Unfair

Economic & Political Weekly (EPW) August 23, 2014 Vol XlIX No 34

S Srinivasan, T Srikrishna, Malini Aisola

Despite the government’s and pharmaceutical lobby’s claims and counterclaims, the Drugs (Prices Control) Order, 2013, which covers only 18% of the total domestic market of Rs 71,246 crore, has had very little positive effect as a price control policy. This article points out that the Order leaves out much that should have been included, while including much that should have been left out. Its provisions have made the playing field more uneven, with multiple ceiling prices, which is very unfair to consumers already dealing with an irrationally priced market

LP_Commentary_23August2014.inddLP_Commentary_23August2014.indd  LP_Commentary_23August2014.indd

Civil society letter on NPPA’s action on price control

Shri Ananth Kumar
Hon’ble Minister of Chemicals and Fertilizers
Udyog Bhavan
New Delhi 11001
 
20 August 2014
 
Dear Ananthji,

 

The National Pharmaceuticals Pricing Authority (NPPA), on July 10, 2014, released a new set of price notifications for 50 cardiovascular and diabetes medicines under paragraph 19 of the Drug Prices Control Order (DPCO), 2013. The notifications for the 108 formulations (two were subsequently withdrawn) of these selected medicines are in addition to the notifications for essential medicines declared under the DPCO 2013. We note that the earlier notifications for essential medicines excluded several dosage forms and strengths because they did not feature in the National List of Essential Medicines (NLEM), 2011. Thus the recent notifications were necessary to cover more of the strengths of medicines than that are listed on the NLEM. In addition, the notifications also covered medicines in the cardiovascular and diabetes therapeutic categories that are not included in the NLEM.

We the undersigned civil society organizations welcome the initiative of the NPPA to cap the prices of formulations involving essential and lifesaving medicines that fall outside the NLEM as a first step towards the institution of a robust, pro-public health policy of drug price control. This is an action that truly interprets the spirit of the Drug Prices Control Order, and its underlying legislation the Essential Commodities Act, 1955. In the past, despite its attention being drawn to the profiteering in medicines not listed in the DPCO, the government had looked the other way.

We are surprised at the misinformation being spread by the Pharmaceutical Industry in this regard, and its efforts to prevent relief to the consumer by filing petitions in the high courts in Mumbai and Delhi. Industry has challenged the legality of fixing the prices of the 50 medicines under Paragraph 19 of the DPCO 2013 when in fact the Government has in successive drug price control orders always retained the power to intervene in prices in the public interest in the light of evidence of overpricing.

Limiting all price regulation only to a list of 348 medicines and specified dosages and strengths in the DPCO 2013 goes against the policy objective of making medicines affordable to the public. The National List of Essential Medicines, a list of 348 rational and cost-effective medicines, is not the basis for production, promotion and prescription in India. In reality the most frequently prescribed and consumed medicines are not listed in the NLEM.

Industry has claimed that this will cause an annual loss of revenues of over Rs.600 crores. NPPA’s action on the market will however be marginal, and nowhere near the doomsday predictions of the industry. It will affect only those brands that were selling at very high prices. We have analysed the impact of the notifications and found that the retail market of Rs.77,526 crores (Moving Annual Total, June 2014) would experience a loss of  Rs. 350 crores (AIOCD-AWACS, PharmaTrac Data, 2014).  This represents a loss of approximately only 2% (Rs. 112 crore) in the anti-diabetic therapy segment and 2.5% (Rs. 238 crore) in the cardiac therapy segment. This in a way establishes the excess profits of the industry in those particular formulations by overcharging the patients.

Also the market based price fixation being followed by the NPPA, a departure from the long used cost-based price control mechanism, is irrational and means that the ceiling prices are still very high. Many medicines are sold by reputed companies much below the NPPA ceiling price. The ceiling price of atorvastatin 40mg is Rs. 22.02 per tablet while Biochem Pharmaceutical is selling the same at a much lower price of Rs. 14.94 per tablet. The ceiling price of glimepiride 3mg is Rs. 10 per tablet, while Ipca Laboratories is able to sell it for Rs. 6.90 per tablet. As per our calculations only a little over one fourth of packs selling on the market will need to revise their prices downwards because they were originally priced higher than the notified price. This is evidence that there is a scope for significant reduction in NPPA ceiling prices, without affecting the reasonable profits of the industry.

We also note that the notifications have not included fixed dose combinations in the cardiovascular and diabetes therapeutic categories whereas the sales of many combinations exceed those of the single molecule medicines.

We also raise the argument that fixing of ceiling prices of all the other dosage forms of all medicines under NLEM cannot be neglected. Here again the same phenomenon of overcharging remains. NPPA should come out with similar action to cover all dosage forms and fixed dose combinations containing one or more medicines under NELM, and as well as bring other essential and life saving medicines under price control immediately.

Although this notification of NPPA will give some relief to patients in the chronic disease sector in the present context, it should be expanded and rationalized. We request the Government and NPPA to strongly defend its stand and also consider the actions suggested by us to promote public health.

Signed,

All India Drug Action Network (AIDAN)
Jan Swasthya Abhiyan
Low Cost Standard Therapeutics (LOCOST)
Medico Friends Circle
Third World Network- India
All India Peoples Science Network (AIPSN)
National Working Group on Patent Laws

 
Copy to:
Hon’ble Shri Narendra Modi, Prime Minister of India
Hon’ble Shri Dr. Harsh Vardhan, Minister of Health and Family Welfare
Mr. Nripendra Misra, Principal Secretary, Prime Minister’s Office
Mr. Lov Verma, Secretary, Department of Health & Family Welfare, Ministry of Health & Family Welfare
Ms. Aradhana Johri, Secretary, Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers
Mr. Injeti Srinivas, Chairman, National Pharmaceutical Pricing Authority, Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers

 
 
 
For further information, contact:
 

LOCOST
1st Floor, Premanand Sahitya Bhavan
Dandia Bazaar
Vadodara, Gujarat – 390001
Ph: 9998771064
Email: chinusrinivasan.x@gmail.com

Jan Swasthya Abhiyan
National Secretariat
c/o Delhi Science Forum
D-158, Lower Ground Floor
Saket, New Delhi 110017
Ph: (011) 26524323, 26862716
Email: jsasect.delhi@gmail.com

 
 
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Generic Dava – Isse Behtar Kuchch Nahi…

DainikBhaskar

Why your medical bill is not coming down?

The price caps imposed by the Indian government on 348 drugs in 2013 have created only an illusion of control, keeping many medicines for conditions ranging from asthma to diabetes and heart disease beyond price regulations… reports The Telegraph. Read more

Moneylife reports that while market-based pricing can potentially reduce the price for two-thirds of essential medicines, there are far too many loopholes. Read more

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Infographic Source: The Telegraph

Medicine prices shouldn’t rise: Supreme Court on Medicine Prices – AIDAN PIL, Nov 17, 2011

To read/ download detailed media coverage on the Supreme Court’s hearing of the prices of medicines Public Interest Litigation case filed by AIDAN, Locost, JSS and others… Click here

EXCERPTS

1) IBNLIVE.com
Medicine prices shouldn’t rise: Supreme Court
New Delhi: The Supreme Court on Thursday told the central government that the prices of medicines should not rise further. “Bring it down, don’t escalate it in the name of policy,” the court said……………. The observation during the hearing on a public interest litigation (PIL) by the All India Drug Action Network (AIDAN), supported by NGOs, which had moved the court in 2003 seeking intervention to ensure that the prices of essential drugs remained within the reach of common man……………… Read full report here

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2) The Pioneer
Keep prices of medicines under check: Centre told
The Supreme Court on Thursday lent voice to the common man’s refrain against rising cost of medical treatment. ….. Wondering how the cost of medicines and treatment had escalated over the years, the bench of Justices GS Singhvi and SJ Mukhopadhyay remarked, “If hospitals like Ram Manohar Lohia, Safdarjung and AIIMS were not there, 10 per cent patients would have finished.” The court made the comment on a PIL filed by the All India Drug Action Network that has demanded essential drugs to be accessible to common man at low prices……………… Read full report here

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3) The Economic Times
Medicine prices should’nt rise: Supreme Court
NEW DELHI: The Supreme Court on Thursday told the central government that the prices of medicines should not rise further. “It should go down, not go up,” said an apex court bench of Justice G S Singhvi and Justice S J Mukhopadhaya. The observation came while hearing a public suit by the All India Drug Action Network of several NGOs which challenged the government’s proposed policy on drug pricing. ……………… Read full report here

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4)  The Economic Times
Medicines’ prices should not escalate, Supreme Court tells Centre
NEW DELHI: Amid fears that drug prices may shoot owing to the proposed drug pricing policy, the Supreme Court today asked the Union government to ensure that rates do not “escalate” causing a burden on the common man………………………… The matter came up for hearing during a PIL filed in 2003 by the All India Drugs Action Network and others which had complained that currently only around 78 drugs are placed under the Drugs (Prices Control) Order, 1995 (DPCO) making rest of the medicines beyond the reach of the common man. ……………… Read full report here

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5) BioScholar news: the latest research news
Medicine prices shouldn’t rise: Supreme Court
The Supreme Court Thursday told the central government that the prices of medicines should not rise further. “It should go down, not go up,” said an apex court bench of Justice G.S. Singhvi and Justice S.J. Mukhopadhaya…………….. The observation came while hearing a public suit by the All India Drug Action Network of several NGOs which challenged the government’s proposed policy on drug pricing.……………… Read full report here

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6) Hindustan Times
‘Drug policy should aim at lowering medicine cost’
The Supreme Court on Thursday told the Centre that its policy on controlling prices of essential drugs should be aimed at lowering the cost of medicines and not raising it…….. The court expressed its concern after the petitioner, All India Drug Action Network (AIDAN), pointed to several loopholes in the government’s fresh policy. The Ministry of Chemicals and Fertilisers has posted its new policy on its website and invited comments on it. The last date for submitting its comments is November 30. AIDAN has criticised the decision to delink the ceiling prices of formulations from the price of bulk drugs. According to the petitioner, if formulation ceiling price are not based on the bulk drug prices, the government would end up legitimising overpricing. ……………… Read full report here

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7) The Telegraph, Calcutta, India
Rein in drug prices, SC tells govt
New Delhi, Nov. 17: The Supreme Court today asked the Centre to ensure that drug prices go down, not up, if and when a new price control policy comes into force. “Prices may go down but should not go up because of policy,” Justice S.J. Mukhopadhyay, sitting alongside senior judge G.S. Singhvi, said. “Bring it down, don’t escalate it in the name of policy,” the bench told additional solicitor-general Parag Tripathi, who was speaking for the government. The bench was hearing a PIL, filed in 2003 by the All India Drug Action Network, seeking court intervention to ensure that essential medicines are made accessible to all. The NGO has since drawn the court’s attention to the government’s draft national pharmaceutical pricing policy, 2011, which it claims will see a further escalation in essential drug prices. ……………… Read full report here

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8 ) Deccan Herald
Ensure drug prices do not rise, SC tells Centre
The Supreme Court on Thursday asked the Central government to ensure that its new pharma policy would not lead to rise in prices of medicines. …………… The court was hearing a public interest litigation filed by All India Drug Action Network of NGOs challenging the government’s proposed policy on drug pricing. The court asked the government to file an affidavit on the new policy and posted the matter for further hearing on January 17. ……………… Read full report here

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9) The Times of India
Prices of 348 essential drugs to be controlled
NEW DELHI: The Centre on Thursday responded to the Supreme Court’s concern over spiralling prices of essential medicines and promised to make all-out efforts to put under strict price control regime all the 348 drugs included in the National List of Essential Medicines (NLEM), 2011……. The bench agreed to give three months time to the government to fulfill its promise and posted the PIL filed by All India Drug Action Network for further hearing in January. ……………… Read full report here

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10) Coverage in Hindi media (Excerpts)

नहींबढ़नीचाहिएदवाकीकीमतें: सुप्रीमकोर्ट

याहू! जागरण

नई दिल्ली। प्रस्तावित औषधि नीति के चलते दवा की कीमतें कहीं आसमान न छूने लगें, इसके मद्देनजर सुप्रीम कोर्ट ने सरकार से सतर्क रहने को कहा है। शीर्ष न्यायालय ने गुरुवार को सरकार से यह सुनिश्चित करने को कहा कि दवा की कीमतें नहीं बढ़नी चाहिए, क्योंकि इससे आम आदमी को परेशानी का सामना करना पड़ सकता है। न्यायमूर्ति जीएस सिंघवी और न्यायमूर्ति एसडी मुखोपाध्याय की पीठ ने कहा, ‘कीमतें नहीं बढ़नी चाहिए। यह आशंका जताई जा रही है कि दवा

http://in.jagran.yahoo.com/news/national/general/medicine-price-shoould-not-hike_5_1_8505848.html

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दवाइयोंकीकीमतेंबढ़नीनहींचाहिए: सुप्रीमकोर्ट

star.newsbullet

नई दिल्ली: सुप्रीम कोर्ट ने गुरुवार को केंद्र सरकार से कहा कि नई दवा नीति तैयार करते समय इस बात का पूरा ख्याल रखें कि दवाइयों की कीमतें नहीं बढ़े. अदालत ने सरकार को नई दवा नीति में जनता के हितों का ध्यान रखने की नसीहत दी. सुप्रीम कोर्ट ने सरकार को चेताया है कि नई दवा नीति के बाद ‘स्वास्थ्य सेवाएं और दवाइयां सस्ती होनी चाहिए, न की ये और बढ़ जाएं.’ सुप्रीम कोर्ट ने लगातार महंगे होते जा रहे इलाज पर गहरी चिंता जताई.

http://star.newsbullet.in/india/34-more/18835-2011-11-17-10-42-54

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नहींबढ़नेचाहिएदवाओंकेदाम : सुप्रीमकोर्ट

अमर उजाला

सुप्रीम कोर्ट ने गुरुवार को केंद्र सरकार से कहा कि दवाओं के दाम और नहीं बढ़ने चाहिए। न्यायमूर्ति जी.एस. सिंघवी और न्यायमूर्ति एस.जे. मुखोपाध्याय की पीठ ने कहा, ‘कीमत कम होनी चाहिए, बढ़नी नहीं चाहिए। पीठ ने कहा कि दवाओं की कीमत और साधारण लैब टेस्ट की कीमत पहले ही काफी अधिक है। पीठ ने सरकार से यह सुनिश्चित करने के लिए कहा कि ये दाम और न बढ़ें। पीठ ने यह बात एक याचिका की सुनवाई करते हुए कही। याचिका विभिन्न गैर सरकारी संगठनों के

http://www.amarujala.com/National/Medicine-prices-shouldnt-rise-Supreme-Court-18726.html

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‘दवा कीमतें अब नहीं बढ़े’

प्रातःकाल

नई दिल्ली। उच्चतम न्यायालय ने देश में दवाओं की आसमान छूती कीमतों को ध्यान में रखते हुए केंद्र सरकार को इनकी कीमतों में और अधिक वृद्धि नहीं करने की आज सलाह दी। न्यायमूॢत जी एस ङ्क्षसघवी और न्यायमूॢत एस जे मुखोपाध्याय की खंडपीठ ने सरकार की प्रस्तावित औषधि मूल्यनिर्धारण नीति को चुनौती देने वाली याचिका की सुनवाई के दौरान यह सलाह दी। खंडपीठ ने कहा कि दवाओं के मूल्य और सामान्य स्वास्थ्य जांच की दरें पहले से ही बहुत अधिक है ।

http://pratahkal.com/hindi-news/national/8336-2011-11-18-02-09-46.html

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कीमतें कम होनी चाहिए, नहीं चाहिए बढ़नी

Pressnote.in

सुप्रीमकोर्ट ने प्रस्तावित औषधि नीति पर अमल से दवा कीमतों में भारी वृद्धि की आशंका के मद्देनजर केंद्र से कहा है कि नई नीति से कीमतें कम होनी चाहिए, बढ़नी नहीं चाहिए। अदालत ने कहा है कि ऐसा नहीं हुआ तो आम आदमी को परेशानी का सामना करना पड़ सकता है। न्यायमूर्ति जीएस सिंघवी और एसडी मुखोपाध्याय ने एक याचिका पर सुनवाई के दौरान कहा, यह आशंका जताई जा रही है कि नई औषधि नीति अपनाने के बाद दवा की कीमतें बढ़ जाएंगी।

http://www.pressnote.in/National-News_145122.html

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नहींबढ़ना चाहिए दवाओं के दाम

देशबन्धु

नई दिल्ली ! दवाओं की लगातार बढ़ रही कीमतों को लेकर सर्वोच्च न्यायालय ने सरकार को सलाह दी है, कि कीमतों में और वृध्दि नहींहोना चाहिए। अदालत में केन्द्र सरकार एक बार फिर से स्वास्थ्य नीति पेश नहीं कर सकी और उसने तीन माह का समय मांग लिया। उल्लेखनीय है, कि पहले दवाओं का नियंत्रण रसायन मंत्रालय करता था, पर बाद में सरकार ने इसके लिए दवा मंत्रालय बना दिया है। विभाग ने कुछ समय पहले औषधि मूल्य निर्धारण नीति जारी की है।

http://www.deshbandhu.co.in/newsdetail/137945/1/20

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दवाओं के दाम नहीं बढ़ने चाहिएं : न्यायालय

देशबन्धु

नई दिल्ली | सर्वोच्च न्यायालय ने गुरुवार को केंद्र सरकार से कहा कि दवाओं के दाम और नहीं बढ़ने चाहिएं। न्यायमूर्ति जी.एस. सिंघवी और न्यायमूर्ति एस.जे. मुखोपाध्याय की पीठ ने कहा, “कीमत कम होनी चाहिए, बढ़नी नहीं चाहिए।” पीठ ने कहा कि दवाओं की कीमत और साधारण लैब टेस्ट की कीमत पहले ही काफी अधिक है। पीठ ने सरकार से यह सुनिश्चित करने के लिए कहा कि ये दाम और न बढ़ें। पीठ ने यह बात एक याचिका की सुनवाई करते हुए कही। याचिका विभिन्न गैर

http://www.deshbandhu.co.in/newsdetail/137893/1/21

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दवाओं की कीमतें नहीं बढ़नी चाहिए: सुप्रीम कोर्ट

SamayLive

सुप्रीम कोर्ट ने कहा कि दवाओं की कीमतें नहीं बढ़नी चाहिए क्योंकि इससे आम आदमी को परेशानी का सामना करना पड़ सकता है. उच्चतम न्यायालय ने प्रस्तावित औषधि नीति को अपनाने से दवाओं की कीमतों में भारी बढ़ोत्तरी होने की आशंका के मद्देनजर गुरुवार को केंद्र सरकार से यह सुनिश्चित करने को कहा कि दवाओं की कीमतें नहीं बढ़नी चाहिए. अदालत ने कहा, ”कीमतें नहीं बढ़नी चाहिए. यह आशंका जताई जा रही है कि कीमतें बढ़ जाएंगी. नयी नीति के नाम पर

http://www.samaylive.com/nation-news-in-hindi/133851/supreme-court-medicines-rate-justice-gs-singhvi-justice-sd-mukho.html

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Product monopolies and high medicine prices back in India

“Product monopolies and high prices are back in India. The MNCs have started marketing new patented drugs at exorbitant prices particularly for life threatening diseases such as cancer…….” Read more here.

The paper “Multinationals and Monopolies: Pharmaceutical Industry in India after TRIPS” by Prof. Sudip Chaudhury from IIM Calcutta attempts to look at the MNC’s behaviour in post TRIPS scenario to show that days of product monopolies are back in India. Access this paper here

Source: http://donttradeourlivesaway.wordpress.com