The Drug Price Review Committee (DPRC) has recommended that the number of drugs under price control be pruned to around 55 from the present 74 and the price control turnover criteria for bulk drugs be more than doubled to Rs 10 crore.
At present, formulations based on bulk drugs with a turnover of Rs 4 crore and above come under the purview of the DPCO.
It has also recommended that pharma companies be allowed, in special circumstances, to raise their end-prices by about 10 to 13 per cent. This is being done to allow pharma companies to go in for good manufacturing practices.
While a number of drugs are expected to be removed from the current list, new ones will also be added to it.
The committee has not yet identified the drugs to be removed from the list or added to it, but it has specified the criteria on the basis of which the decision will be made. The committee has also recommended various price concessions to be granted to pharma companies which are expected to raise the prices of drugs by ten to thirteen per cent.
It has recommended increasing the Maximum Allowable Post Manufacturing Expenses from the current 100 per cent to 130 per cent. MAPE is one of the components used to determine the retail price of formulations. LE>
