Govt to regulate drug prices of pharma MNCs
Updated: Mar 11, 2013 01:25:01pm
New Delhi, Mar11 (KNN) The National Pharmaceutical Pricing Authority (NPPA) would monitor and control drug prices of Pharmaceutical Multinational Companies (MNCs), said Union Minister of Chemicals and Fertilizers,Srikant Jena recently, allaying consumer fears that MNCs entry would witness a surge in prices.
“Under the provisions of the Drugs (Prices Control) Order (DPCO), 1995, the prices of 74 scheduled bulk drugs and the formulations containing any of these scheduled drugs are controlled,” the Minister said.
“NPPA fixes or revises prices of scheduled drugs or formulations as per the provisions of the DPCO. No one is authorized to sell any scheduled drug or formulation at a price higher than the price fixed by NPPA,” he added.
Currently, the government regulates the prices even of non-scheduled drugs if they increased by ten per cent a year.
However, “In respect of drugs not covered under the DPCO manufacturers are at liberty to fix the prices by themselves without seeking the approval of Government or NPPA,” Jena said.
Further, he explained that there was no control on the launch price of non-scheduled formulations. Nevertheless, NPPA, as a part of their price-monitoring activity, regularly examined the movement in prices of non-scheduled formulations.
“The monthly reports of IMS Health and the information furnished by individual manufacturers are utilized for the purpose of monitoring prices of non-scheduled formulations,” Jena said.
“Wherever a price increases beyond 10 per cent per annum a year, the manufacturer is asked to bring down the price voluntarily failing which, subject to prescribed conditions, action is initiated under paragraph 10(b) of the DPCO for fixing the price of the formulation in public interest,” he added.
IMS is a leading provider of information, services and technology for the healthcare industry, covering markets in over 100 countries around the world.
Presently, six pharmaceuticals MNCs have entered the Indian market as per the information from the Centre for Monitoring Indian Economy(CMIE). They are Abbott Healthcare Pvt. Ltd. 2011, FreseniusKabi Oncology Ltd. 2011, Mylan Laboratories Ltd. 2011, Vascular Concepts Pvt. Ltd. 2011. ShanthaBiotechnics Ltd. 2011, Ranbaxy Laboratories Ltd.(Daichi-Sankyo Group) 2012.
MNCs have extended a greater reach into the Indian pharmaceutical space owing to several reasons. Among them are the introduction of product patents in 2005, 100 percent Foreign Direct Investment (FDI) in pharmaceuticals in 2006, and the strong growth prospects for generics and biosimilars in the country. (KNN/SK)
“Under the provisions of the Drugs (Prices Control) Order (DPCO), 1995, the prices of 74 scheduled bulk drugs and the formulations containing any of these scheduled drugs are controlled,” the Minister said.
“NPPA fixes or revises prices of scheduled drugs or formulations as per the provisions of the DPCO. No one is authorized to sell any scheduled drug or formulation at a price higher than the price fixed by NPPA,” he added.
Currently, the government regulates the prices even of non-scheduled drugs if they increased by ten per cent a year.
However, “In respect of drugs not covered under the DPCO manufacturers are at liberty to fix the prices by themselves without seeking the approval of Government or NPPA,” Jena said.
Further, he explained that there was no control on the launch price of non-scheduled formulations. Nevertheless, NPPA, as a part of their price-monitoring activity, regularly examined the movement in prices of non-scheduled formulations.
“The monthly reports of IMS Health and the information furnished by individual manufacturers are utilized for the purpose of monitoring prices of non-scheduled formulations,” Jena said.
“Wherever a price increases beyond 10 per cent per annum a year, the manufacturer is asked to bring down the price voluntarily failing which, subject to prescribed conditions, action is initiated under paragraph 10(b) of the DPCO for fixing the price of the formulation in public interest,” he added.
IMS is a leading provider of information, services and technology for the healthcare industry, covering markets in over 100 countries around the world.
Presently, six pharmaceuticals MNCs have entered the Indian market as per the information from the Centre for Monitoring Indian Economy(CMIE). They are Abbott Healthcare Pvt. Ltd. 2011, FreseniusKabi Oncology Ltd. 2011, Mylan Laboratories Ltd. 2011, Vascular Concepts Pvt. Ltd. 2011. ShanthaBiotechnics Ltd. 2011, Ranbaxy Laboratories Ltd.(Daichi-Sankyo Group) 2012.
MNCs have extended a greater reach into the Indian pharmaceutical space owing to several reasons. Among them are the introduction of product patents in 2005, 100 percent Foreign Direct Investment (FDI) in pharmaceuticals in 2006, and the strong growth prospects for generics and biosimilars in the country. (KNN/SK)
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