The Supreme Court recently directed the government to have a re-look at the drug pricing policy to help make life-saving medicines affordable for the common man.
The court also observed that there is an impression the government favours pharmaceutical companies and is not pro-poor. Hence, the court asked the Department of Pharmaceuticals under the Ministries of Health and Chemical and Fertilisers to re-examine the National Pharmaceutical Policy (NPP) 2012 and Drug Pricing Control Order (DPCO) of 2013 in light of several recommendations made by NGO All India Drug Action Network.
The bench also wanted the government to address the NGO’s concern that prices of drugs were fixed at levels which gave 5,000 times profit to the maker.
Background:
The bench also wanted the government to address the NGO’s concern that prices of drugs were fixed at levels which gave 5,000 times profit to the maker.
Background:
The NGO in a public interest petition had raised objections on the formula for drug pricing.
It said the formula institutionalised “super-profits in the guise of price control, excluded from price control life-saving medicines for diseases such as malaria and TB, excluded all fixed dose combinations which amount to 50 per cent of the market.”
The NGO said the government’s pricing policy further excluded essential medicines belonging to the same chemical class, besides drugs provided in the national health programmes such as for HIV, diabetes, hypertension and anaemia, medicines with appropriate dosages for children and patented medicines.
The DPCO lists 348 drugs for price control. The NGO wants the list to be extended to include all drugs on the national list of life-saving drugs.
National Pharmaceutical Pricing policy, 2012:
It said the formula institutionalised “super-profits in the guise of price control, excluded from price control life-saving medicines for diseases such as malaria and TB, excluded all fixed dose combinations which amount to 50 per cent of the market.”
The NGO said the government’s pricing policy further excluded essential medicines belonging to the same chemical class, besides drugs provided in the national health programmes such as for HIV, diabetes, hypertension and anaemia, medicines with appropriate dosages for children and patented medicines.
The DPCO lists 348 drugs for price control. The NGO wants the list to be extended to include all drugs on the national list of life-saving drugs.
National Pharmaceutical Pricing policy, 2012:
The government had approved the National Pharmaceutical Pricing Policy (NPPP) in 2012.
This policy at bringing 348 essential drugs under price control and also lead to reduction in prices. With this, the Govt would control prices of 348 essential drugs.
The policy debars the companies from using the Wholesale Price Index (WPI) to increase the prices of the essential medicines on their own each year. Thus, the companies had to seek approval from the National Pharmaceutical Pricing Authority whenever they wanted to increase the prices of the items covered under the Drug Price Control Order.
This policy at bringing 348 essential drugs under price control and also lead to reduction in prices. With this, the Govt would control prices of 348 essential drugs.
The policy debars the companies from using the Wholesale Price Index (WPI) to increase the prices of the essential medicines on their own each year. Thus, the companies had to seek approval from the National Pharmaceutical Pricing Authority whenever they wanted to increase the prices of the items covered under the Drug Price Control Order.
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