The group of ministers (GoM) on the proposed National Pharmaceutical Pricing Policy is likely to recommend the weighted average method to determine prices of essential drugs. The policy, which would bring 348 medicines into its purview, is expected to be finalised by the end of this month.
The commerce ministry has recommended that the weighted average price of all drug brands with more than five per cent market share in a particular therapeutic segment be fixed as the ceiling. The ministerial panel, headed by Agriculture Minister Sharad Pawar, today met to discuss various pricing models, after the Supreme Court pulled up the government last week for not being able to decide on the matter.
“We will by all means finalise it in another eight to 10 days,” Pawar told reporters after the meeting. The apex court has fixed September 27 as the next date of hearing and asked the GoM to take a decision by then. “We will seek some more time from the court,” said Minister of State for Chemicals and Fertilisers Srikant Jena.
According to a senior official in the department of pharmaceuticals, the panel might adopt the method suggested by the commerce ministry, with some changes. “The market share is likely to be tweaked…it could be weighted average of drugs with more than three per cent market share, instead of five,” the official said.
The panel has, however, arrived at a consensus on the number of drugs to be brought under direct price control.
“As of now, there will be only 348 medicines under price control. We may look at bringing in combinations drugs under the purview at a later stage,” Jena said. This would mean 614 packs of medicines with various dosage or strengths would come under regulation.
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Under the current system, there are 74 bulk drugs and all medicines containing one or more such drugs are under direct price control. For the rest of the medicines, the companies concerned can increase prices by up to 10 per cent annually. An increase beyond that would have to get the approval of the National Pharmaceutical Pricing Authority.
The GoM has also sought more information from the department about the drug pricing models opted in other emerging economies. According to an official, the department will seek information about pricing models of at least 10 countries, including China, Bangladesh, Mexico and South African nations from the World Health Organization and foreign agencies.