The world's largest drug-maker, Pfizer, today said the industry supports the government's initiative to bring 348 drugs in the National List of Essential Medicines (NLEM) under price control, but the ambit should not be extended further.
"The industry is largely supportive of the NLEM List. But what we are saying (is) that do not go beyond the NLEM List," Pfizer India MD Kewal Handa said here today.
Based on the existing list of 348 drugs, 75% of the industry will come under price control. Any extension of the list will make the domestic industry less attractive and investment will go outside, he added.
Handa was speaking at an event organised by the Associated Chambers of Commerce and Industry of India (Assocham) on the proposed National Pharmaceutical Pricing Policy.
"Let us be firm on 348 drugs. The government should not go beyond it," he added.
Handa said the government should instead say there will be no taxes (excise and VAT) on NLEM drugs, which would really help the Indian pharma industry.
Pfizer is present in India through its Mumbai-based subsidiary, Pfizer Ltd.
"There is also a general perception that only price control or price reduction is linked to access of medicines," Handa said.
A reduction in drug prices alone will not be able to provide access to medicines for all, as the public health system faces immense challenges on account of poor infrastructure and inadequate health insurance coverage, he added.
For ensuring access to medicines, the focus has to be on improving infrastructure and healthcare.
The draft NPPP, 2011, proposes to bring 60% of the total domestic pharmaceutical market, amounting to nearly Rs 29,000 crore, under price control by bringing all 348 drugs specified in the National List of Essential Medicines, 2011, under price control.
It seeks to regulate the price of drug formulations only, unlike the existing principle of controlling the prices of specified bulk drugs and their formulations as adopted in the Drug Policy, 1994.
