Move is the first in a series of steps to help pharma industry.
The National Pharmaceutical Pricing Authority (NPPA) may soon allow pharma companies to increase prices of over 70 medicines, including some antibiotics as well as imported life savers.
The authority will consider price revision applications of these medicines at a meeting scheduled for July 31, following representations from companies asking it to hike prices.
The move is the first in a series of measures being worked out by the recently formed Department of Pharmaceuticals to help ease margin pressures on the domestic pharma firms, which have been hit by a steep increase in raw material costs.
Over the past few months, the price of bulk raw materials that go into the making of antibiotics like ciprofloxacin and ofloxacin have gone up steeply.
The officials of the pharma department and the NPPA recently concluded discussions with bulk drug (raw material) manufacturers to assess the situation.
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The government is keen to revive the ailing bulk drug sector, which had earlier been hit hard by cheap bulk drug imports from China.
“It is not just revival of closed or loss-making units. We are also trying to make use of the spare capacities in other units to tackle the problem,” an official said.
The department is exploring the possibilities of channelising funds available under existing schemes to help the domestic bulk drug industry. Officials are also planning a visit to China to study the pricing practices there.
The drug price regulator will also speed up the process of price revision from the current deadline of 60 days to 30 days.