Plan panel opposes move to bring 354 drugs in price net

The ministry of chemicals and fertiliser?s move to bring more drugs under the price control regime has met stiff resistance.

The Planning Commission, in a note to the group of ministers (GoM) on the national pharma policy, has said any move to include more drugs in the price control net would discourage new investment and limit competition.

The government and the pharmaceutical industry have been at loggerheads over controlling prices of more drugs. At present, there are bulk 74 drugs which are under the price control regime, and the chemicals and fertiliser ministry wants to bring in another 354 drugs in the net.

The Planning Commission, in its note to the GoM headed by agriculture minister Sharad Pawar, has said expanding the basket of controlled drugs from the current 74 to 354 in the national list of essential medicines (NLEM) would adversely impact the R&D initiatives taken by various companies as the move would drastically reduce their margins and would slow down the process of economic reforms. ?The proposal, if implemented, would jeopardise the development in the sunrise sector,? the note said.

It is also of the view that there was little evidence that the Indian pharmaceutical industry was overcharging and medicine prices in the country continued to be the lowest in the world.

While the ministry has been maintaining that the whole policy is based on the Supreme Court?s order, the Commission suggests ?the order be examined by the attorney-general.?

The commission has also asked for a separate detailed note on price control of drugs (to be placed before the Cabinet) that would address these issues and also outline the principles on which price control should be examined.

During its second meet held recently, the GoM had invited the pharma industry and consumer groups for their suggestions on the issue of putting more drugs under the price control ambit.

The Indian drug market is estimated to be about Rs 3,500 crore and is growing at about 13% a year and any move to include more drugs under the price control could hurt the financials of the pharma companies.