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Pharma cos
want fewer price controls
The Times of India,
September 13, 2007
NEW DELHI: While seeking
lesser price controls on drugs, industry chambers CII
and Organisation of Pharmaceutical Producers of India
are of the view that regulatory action against companies
should stop till a drug policy is finalised.
The finalisation of national pharma policy will take
some more time as the GoM, chaired by Union Food and
Agriculture Minister, Sharad Pawar, is expected to meet
again over the next few weeks.
Emerging from the meeting that went on for over two
hours, Ranbaxy CMD Malvinder Singh said "competition in
the market is enough to keep prices under check and
ensure that the drugs are affordable. What needs to be
ensured is that the drugs are made accessible".
He said the government should move away from cost-based
price controls. In November last year, the ministry of
chemicals had sent the draft pharma policy to the
Cabinet which increased the span of control on 354
essential medicines, besides the existing 74 drugs under
Drug Price Control Order, 1995.
"The group of ministers today heard the suggestions of
various industry and consumer groups, and will meet
again soon. We are bound under the Common Minimum
Programme to make medicines more affordable for the
masses", Union minister for chemicals Ram Vilas Paswan
told newspersons.
Responding to a query, he said that consumer groups are
of the view that National Pharmaceutical Pricing
Authority (NPPA) should be strengthened, while industry
is seeking relaxation of the stringent guidelines.
Recently, the NPPA shot off price control orders to
major companies including Ranbaxy, Novartis, Nicholas
Piramal. Industry is also unhappy that the annual
threshold limit of price increase in decontrolled
medicines has been brought down to 10% from 20%.
Meanwhile, consumer organisation such as CUTS Centre for
Competition, Investment & Economic Regulation suggested
that the Competition Act should be used to stem
anti-competitive practices in the market, and medicines
should be promoted in generic names rather than the
brand name.
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