Decontrolled drug prices rise by 117% in 13 years
The price of a drug used to treat seizures called Eptoin Tabs 100 mg has risen by about 327% from Rs 27 to Rs 118 for 100 tablets. Lifestyle changes can beat stress
By Gireesh Chandra Prasad, TNN |
NEW DELHI: Prices of major pharmaceutical brands that were freed from government control about 13 years ago have risen ten times faster than the prices of those retained under a list of controlled drugs, the government has found in a study which will be discussed at a group of ministers’ meeting later this month.
The study comes as a response from the chemicals and fertilizers ministry to a study which pharma industry leaders presented to the ministerial panel early last month in support of their claim that price rise was only moderate. According to the latest study by the National Pharmaceutical Pricing Authority (NPPA), prices of 15 brands that were freed from government control in 1995 became costlier by 117% on an average during the 13 year period.
The price of a drug used to treat seizures called Eptoin Tabs 100 mg has risen by about 327% from Rs 27 to Rs 118 for 100 tablets. Anti-depressant Paraxin Capsules 500 mg rose by 217% during the same period. The study compares medicine prices in December 1994 and July 2007.
Compared to this, brands that were retained under price control moved up only by 10% during the entire period, the study has revealed. Annual average price rise is less than a per cent in this category compared to about 10% in the other category.
Pharmaceutical industry representatives told ET that prices were artificially suppressed till 1995 and, therefore, they witnessed some increase after they were freed to market forces. It is not fair to compare the prices at these different levels, they said. “We have found in a wider study covering the entire market that prices of government controlled drugs have declined by about 1.7% a year while the price increase in control free drugs is nominal at about 1.8%. Considering a 4% inflation, this is a 2.2% real rate of decline”, said Indian Pharmaceutical Alliance secretary general D G Shah.
The next meeting of the ministerial panel is set to consider the NPPA study. The studies by the government and the industry which reveal different dimensions of price movements, is set to have some influence on the members of the ministerial panel even as a possible early general election will put pressure on its members to take populist measures.
The study comes as a response from the chemicals and fertilizers ministry to a study which pharma industry leaders presented to the ministerial panel early last month in support of their claim that price rise was only moderate. According to the latest study by the National Pharmaceutical Pricing Authority (NPPA), prices of 15 brands that were freed from government control in 1995 became costlier by 117% on an average during the 13 year period.
The price of a drug used to treat seizures called Eptoin Tabs 100 mg has risen by about 327% from Rs 27 to Rs 118 for 100 tablets. Anti-depressant Paraxin Capsules 500 mg rose by 217% during the same period. The study compares medicine prices in December 1994 and July 2007.
Compared to this, brands that were retained under price control moved up only by 10% during the entire period, the study has revealed. Annual average price rise is less than a per cent in this category compared to about 10% in the other category.
Pharmaceutical industry representatives told ET that prices were artificially suppressed till 1995 and, therefore, they witnessed some increase after they were freed to market forces. It is not fair to compare the prices at these different levels, they said. “We have found in a wider study covering the entire market that prices of government controlled drugs have declined by about 1.7% a year while the price increase in control free drugs is nominal at about 1.8%. Considering a 4% inflation, this is a 2.2% real rate of decline”, said Indian Pharmaceutical Alliance secretary general D G Shah.
The next meeting of the ministerial panel is set to consider the NPPA study. The studies by the government and the industry which reveal different dimensions of price movements, is set to have some influence on the members of the ministerial panel even as a possible early general election will put pressure on its members to take populist measures.
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