Loss due to new pharma pricing policy may not exceed R1,000 cr

Written by Soma Das | New Delhi | Updated: Oct 31 2011, 06:11am hrs
Loss to the R58,000-crore domestic pharma industry may not exceed R1,000 crore if the latest national pharma pricing policy draft is implemented in its present form. This is an estimate of the pharma marketing research firm AIOCD AWACs which views the proposed policy to be pragmatic and less detrimental to the domestic drug industry than was earlier expected.

Industry will heave a sigh of relief as it is not as harsh as anticipated but has significant benefits for patients as well. The overall impact is not likely to exceed R1,000 crore. The generous annual price hike based on wholesale price index is likely to come as a big boost to the industry. This is because, in any case, intense competition prevailing in the drug market ensures that today price hikes are approximately 20% of the manufacturing wholesale price index, said Ameesh Masurekar, director, AIOCD AWACS.

According to the proposed draft, the ceiling prices of drugs would be allowed to be revised annually upto the limit of the change in the Wholesale Price Index for manufactured goods, as notified by the department of industrial policy and promotion.