IDMA freezes price hike for 6 months

Indian Drug Manufacturers' Association (IDMA), the apex body of around 500 pharmaceutical companies, has decided to go for a freeze on drug price increase across the board for the next six months.

Dara B Patel, secretary general of IDMA, said, "The decision highlights our commitment towards making medicines affordable for all. This is also to support the government to curtail inflationary trends in the economy." The inflation rate in the country has hit a four-year peak of 8.17 per cent.

He claimed that IDMA members are already exercising price restraint policy. With input costs on an upswing, the decision may directly impact the bottomline of drug makers.

"The impact has to be absorbed by pharma companies. A cost cutting initiative could be the way out," Patel added. This follows a similar decision taken by Indian Pharmaceutical Alliance (IPA).

The body comprises 11 export-oriented and research-based pharmaceutical majors including Ranbaxy, Dr. Reddy's, Sun Pharma, Torrent, Wockhardt, Glenmark Pharmaceuticals, Cadila Healthcare, Lupin, Alembic, USV and Unichem.