Ahead of Modi’s US visit, Centre mollifies drug majors
25 Sept 2014 5:17 AM IST
The government’s decision to curb the power of the pricing authority comes days before new prime minister Narendra Modi visits the United States for the first time since taking office. Ties between India and the United States have been strained in recent years because of trade policies and patent disputes.
Notably, the NPPA had invoked Para 19 of the the Drug (Prices Control) Order of 2013, to cap prices of 108 medicines, including cardiac, diabetes and HIV/AIDS drugs, last month, which was protested by leading drug manufacturers.
The NPPA’s decision to cap prices of 108 non-essential drugs has hit profit margins of Indian drug majors and their American principles including manufacturers such as Ranbaxy Sanofi SA, Merck & Co Inc, Pfizer Inc and Abbott Laboratories, GlaxoSmithKline, Intas, SunPharma, Cipla, USB, etc.
In a statement, the apex drug price regulator said that the Department of Pharmaceuticals under the ministry of chemicals and fertilizers on Friday last ordered the NPPA to withdraw a guideline under the Drug (Prices Control) Order of 2013 that gave the pricing authority powers to cap prices of non-essential drugs.
Following the orders of the ministry, the drug pricing authority stated it was withdrawing ‘with immediate effect’ the guidelines issued on 29 May this year that put price caps on certain (non-essential) drugs used for treatment of cancer, HIV and cardiovascular diseases.
The statement released by apex drug price regulator did not mention its 10 July order that capped ceiling or retail prices of 108 non-essential drugs. However, sources said that the ministry’s direction is all encompassing and all such control orders stand null and void.
While decoding the order, a senior NPPA official said, ‘It simply means that the authority will no longer have the ‘power’ to control drug prices which have been drawn from the DPCO.’
After Millennium Post reported on 9 September about the shortage of life-saving drug after government introduced price control, the NPPA on the same date issued notification to drug manufacturers to maintain the regular supply of certain essential medicines, namely, anti-snake venom, rabies vaccine, rabies immunoglobulin, Albumin injection and anti-malarial drugs.
The notification from regulator also said that in case of failure /non-compliance of Para 8, the manufacturer/marketer/importer shall be liable for penal action under the relevant provisions of Essential Commodities Act, 1955.
Notably, the NPPA had invoked Para 19 of the the Drug (Prices Control) Order of 2013, to cap prices of 108 medicines, including cardiac, diabetes and HIV/AIDS drugs, last month, which was protested by leading drug manufacturers.
The NPPA’s decision to cap prices of 108 non-essential drugs has hit profit margins of Indian drug majors and their American principles including manufacturers such as Ranbaxy Sanofi SA, Merck & Co Inc, Pfizer Inc and Abbott Laboratories, GlaxoSmithKline, Intas, SunPharma, Cipla, USB, etc.
In a statement, the apex drug price regulator said that the Department of Pharmaceuticals under the ministry of chemicals and fertilizers on Friday last ordered the NPPA to withdraw a guideline under the Drug (Prices Control) Order of 2013 that gave the pricing authority powers to cap prices of non-essential drugs.
Following the orders of the ministry, the drug pricing authority stated it was withdrawing ‘with immediate effect’ the guidelines issued on 29 May this year that put price caps on certain (non-essential) drugs used for treatment of cancer, HIV and cardiovascular diseases.
The statement released by apex drug price regulator did not mention its 10 July order that capped ceiling or retail prices of 108 non-essential drugs. However, sources said that the ministry’s direction is all encompassing and all such control orders stand null and void.
While decoding the order, a senior NPPA official said, ‘It simply means that the authority will no longer have the ‘power’ to control drug prices which have been drawn from the DPCO.’
After Millennium Post reported on 9 September about the shortage of life-saving drug after government introduced price control, the NPPA on the same date issued notification to drug manufacturers to maintain the regular supply of certain essential medicines, namely, anti-snake venom, rabies vaccine, rabies immunoglobulin, Albumin injection and anti-malarial drugs.
The notification from regulator also said that in case of failure /non-compliance of Para 8, the manufacturer/marketer/importer shall be liable for penal action under the relevant provisions of Essential Commodities Act, 1955.
Next Story
