A high-level panel constituted by the health ministry is likely to suggest a system of negotiated prices for all new medicines approved in the country. The proposal to control the launch prices of drugs comes at a time when the chemicals and fertilisers ministry, responsible for deciding medicine prices, is busy preparing a national pharmaceutical pricing policy covering all essential medicines.
Separately, the panel would also suggest a negotiation pricing system for patented medicines, a framework for which is already being discussed by the ministry.
The task force is headed by Vishwa Mohan Katoch, secretary, department of health research. Last year, the panel was asked to prepare a long-term policy and a strategy to strengthen the drug sector in the country.
According to a panel member, the task force has agreed with the ministry’s proposal to introduce a comprehensive price-monitoring system, with appropriate market-based reference prices and mandatory price negotiations, to keep medicine prices under check. It has also highlighted the need to address the large inter-brand difference in the prices of several medicines and fix trade margins for all medicines, irrespective of whether these are price controlled drugs or not. Monopolistic tendencies may also be suggested as a criterion for intense price monitoring.
The panel may also propose a graded system of profit and trade margins for different categories of medicines. It also supports promoting generic drugs and ensuring adequate availability of quality generic medicines through public health channels.
The recommendations, once accepted by the health ministry, would clarify the ministry’s stand on drug price-control proposals.
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The chemical & fertiliser ministry’s draft drug price policy would be examined by a group of ministers, headed by agriculture minister Sharad Pawar, on March 28. The health minister is also a member of the group.
The draft pharmaceutical pricing policy document brought out by the chemical & fertiliser ministry for public comments had completely moved from a cost-based price control system to a market-based one. It had suggested an average price of top three brands could form the basis of a ceiling price for that product. The draft policy had also expanded the span of price control from specific medicine strengths/packs mentioned in the National List of Essential Medicines (NLEM) to all strengths and combination of drugs that contain traces of NLEM drugs.
The health ministry panel, however, is expected to suggest limiting direct price control to NLEM drugs and managing the prices of the rest through intense monitoring.