SMEs cut prices of 208 drugs by up to 75%

The Indian Drug Manufacturers Association (IDMA), the largest industry 
body mainly representing small and medium Indian pharmaceutical companies, said its members have voluntarily reduced prices of branded generic products.

In a letter sent to the joint secretary, ministry of chemicals and petrochemicals, the IDMA quoted some of its members as saying that their existing prices were already lower than the price of brand leaders in the segment.

The voluntary decision to reduce the prices of branded drugs was
taken in the wake of the central government's concern about high trade margins on certain medicines. The industry association has informed that currently margins paid by its member companies on scheduled drugs are 8% to wholesalers and 16% to retailers. While, on non-scheduled drugs, they are 10% and 20% respectively.

The price reduction by the domestic drug companies covers about 208 products and the approximate reduction ranges from 6% to 75%.