[india-drug] Drug pricing: Centre gives ultimatum to cos. (1)

["anita kotwani" <anitakotwani@msn.com>]

Drug pricing: Centre gives ultimatum to cos. (1)
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Dear All,

   We have 'free market' for pharmaceuticals and it is the market forces
   that determine  the  final  /retail  price of a medicine. There is no
   control of government on prices of medicines except the prices of 
   74  bulk  drugs  that  are listed in DPCO  which are fixed by NPPA. In
   that list  also  price  of medicines of a few drugs is not revised for a
   long time  and these medicines are available at a very variable price
   in the market, one of such medicine is Ciprofloxacin.

   On  September 22, 2006 there was an article in The Times of India, New
   Delhi, stating that pharma industry has agreed to cap the margins of
   wholesalers (15%)  and  retailers(35%)  and  hence the prices if common
   drugs (off  patent) would fall by 30-50%. This self-imposed discipline
   was to  be in place from October 2, 2006. But the prices of medicines remain the same.

   On November 8, 2006, the times of India, New Delhi edition has an
   article, ?Drug pricing:  Centre gives ultimatum to cos" that states
   that Centre has issued deadlines for drug manufacturers to reduce the
   MRP  (Maximum Retail Price) of 886 drugs by November 15, otherwise the
   GOVERNMENT WOULD THEN NOTIFY THESE DRUGS TO BE SOLD AT THE PRICES AGREED UPON BY THE MANUFACTURERES.

   It is high time that some policy changes are made and some check is
   imposed on the manufacturer for the prices of medicines. Prices of
   medicines have an impact on the affordability of drugs and ultimately
   access to essential medicines. In India more than 80% of drug
   financing is out-of-pocket - patients have to pay for the medicines
   themselves. High prices of medicines are a barrier to good health.

   The group can discuss  the ways to decrease prices of medicines and
   increase the availability of medicines both in public and private
   sector so that access of health care is improved especially for the
   poorer section of the society.

   Anita Kotwani
   Department of Pharmacology
   V.P.Chest Institute
   University of Delhi
"anita kotwani" <anitakotwani@msn.com>
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