The record
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- A Parliamentary Standing Committee has urged the government to urgently create a permanent mechanism to regulate trade margins on anti-cancer medicines and other essential drugs, saying delays in reforming the drug pricing framework keep treatments expensive.
- In an Action Taken Report tabled in Parliament, the committee said it was dissatisfied with most government responses, with only four of its 11 earlier recommendations accepted.
- It wants the Drugs (Prices Control) Order, 2013 amended to give a permanent legal basis for trade margin rationalisation, and also pressed for price regulation of non-scheduled medicines and 'trade generics' sold in rural areas.
- The government defended the current framework, saying analysis of around 98,000 products shows very high margins are confined to a small segment of the market.
What to watch next
- Whether the government moves to amend DPCO 2013 to give permanent legal backing to trade margin caps
- How the Department of Pharmaceuticals addresses stakeholder concerns on margin caps, exemptions and MSME impact
- Disclosure of consultation details and data on medicines with trade margins exceeding 100 per cent
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Named India · anti-cancer medicines · Drugs (Prices Control) Order (DPCO), 2013 · National Pharmaceutical Pricing Policy (NPPP), 2012 · non-scheduled medicines · pharmaceutical companies · Central Government · Department of Pharmaceuticals · National Pharmaceutical Pricing Authority · Parliamentary Standing Committee · Standing Committee on Chemicals and Fertilizers
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