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Kerala to regulate prices of life-saving drugs

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P B Jayakumar Mumbai
Last Updated : Feb 05 2013 | 2:51 AM IST
While the attempts of the Centre to regulate the prices of all essential medicines remained futile so far due to resistance from the pharmaceutical industry and drug traders, the Kerala government is implementing a unique initiative to regulate the prices of all life-saving medicines.
 
Since December 1, the state government has decided not to license any new drugs in the non-price controlled segment, if the drug is priced above the price of the lowest-priced brand in the same drug category available in Kerala.
 
Further, the drug manufacturers will have to get prior permission from the state drugs controller to hike the price of any medicine from the existing level. However, the manufacturers are free to reduce the prices at will.
 
The state government has directed the manufacturers to furnish the prices of all medicines sold in Kerala with a deadline of March 31, 2008, and will have to furnish the details every six months, said MP George, drugs controller (in-charge), Kerala.
 
"In the second phase, our department will ensure the drugs are sold only with bills, by mandating the regular pharmacies and hospital pharmacies to do so and follow up with strict, frequent inspections. We are in the process of collecting data from the first point of sale, to know the details on drugs coming to the wholesaler market in Kerala," he said.
 
Kerala's 3.18-crore population is estimated to be among the largest consumers of drugs in the country, worth more than Rs 1,500 crore annually. More than 35,000 pharmaceutical brands are available in the state, said trade sources.
 
The drug manufacturing and distribution process in India is regulated according to the rules in the Drugs and Cosmetics Act, 1945, by which state licensing authorities have the powers to interpret and implement the rules.
 
A few years ago, the governments of Rajasthan and Haryana had tried to regulate the prices of drugs, but succeeded partially, said sources.
 
The Kerala government is also planning to bring out a list of essential medicines to educate the consumers and doctors. "It is a known fact that doctors prescribe many medicines unnecessarily for normal diseases, under the influence of pharmaceutical companies. The move is to sensitise the consumers," added the official.
 
Prices of 74 bulk drugs specified in the first schedule of the Drugs (Price) Control Order, 1995, and the formulations based on these drugs are regulated by the National Pharmaceutical Pricing Authority.
 
Union Chemicals and Fertilisers Minister Ram Vilas Paswan has been trying for the last three years to bring another 355 life-saving drugs under price control.
 
Suggestions on price control of these medicines are yet to be implemented, since the new pharmaceutical policy awaits final approval of the central government.

 
 

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First Published: Dec 20 2007 | 12:00 AM IST

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