Drug pricing GoM may meet FM to clear standoff

But this time, it is likely to host a special guest — finance minister P Chidambaram, who has raised a series of objections to the market-based pricing formula recommended by the GoM and has instead expressed his preference for continuance of the existing cost-based mechanism for fixation of essential drugs prices.

This urgent meeting of GoM has been convened on the direction of the Prime Minister’s Office to build a consensus over the issue, so that this disagreement between finance ministry and the GoM over the best method to regulate drug prices doesn’t reach the Cabinet, which is likely to take up the matter next week.

The government is racing against a deadline in this case. The Centre has promised the Supreme Court that it would notify its decision on the national pharma pricing policy by November 25 and would inform the apex court about it in its next hearing scheduled on November 27.

According to sources, the GoM, which has pored over mines of data and consulted over 60 stakeholders during the deliberation process, may try to persuade the finance minister in favour of the market-based pricing model.

The finance ministry, which was not part of the GoM, raised objections when the Cabinet note outlining the proposal was circulated. The ministry also sent its note

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