AIDS, cancer drugs may get cheaper by 50%

The chemicals and petrochemicals ministry has decided to negotiate with manufacturers of anti-cancer and anti-AIDS drugs a slash in prices by at least 50 per cent.

The intent is to drive down the prices not merely for the government's bulk procurement, done by specified agencies, but across the board. The ministry recently proposed waiver of all central levies on these drugs.

Prominent manufacturers of anti-AIDS drugs, or anti-retrovirals, are Ranbaxy, Cipla, Aurobindo, Hetero Drugs, Emcure and Matrix Labs. Anti-cancer drugs manufacturers include Dr Reddy's, Sun Pharma, Cipla, RPG LifeSciences and multinational companies like Pfizer and Novartis.

"We will write to the chief executives of the companies to negotiate a lowering of price," said a senior chemicals & petrochemicals ministry official.

Currently, these drugs attract 16 per cent excise duty, customs duty of 0-15 per cent and 4 per cent value added tax. These are calculated on 60 per cent of the maximum retail price.

The ministry is hoping that its lead on waiving levies would be followed by states. The ministry has also prepared an enhanced list for the finance ministry of 69 anti-cancer and anti-AIDS drugs, up from the 42 that it had put together in the National List of Essential Medicines (NLEM).

While the number of anti-AIDS drugs has been doubled to 24, the revised list has increased the anti-cancer list to include 45 drugs.

Earlier, the NLEM had set aside 12 anti-AIDS and 30 anti-cancer drugs. "NLEM only contained first generation drugs and there was a need to include newer molecules of the second generation drugs that are now available in the market," explained the official.

Indian Pharmaceutical Alliance's Secretary General D G Shah said they were waiting for the official word on the matter, Indian Drug Manufacturers' Association has supported it.