Generic drugs will cost less by October
The maximum retail price (MRP) of unbranded generic drugs will now include taxes, with no provision for local taxes. Also, the price, along with the name, manufacturing date and expiry date, will be printed in Hindi.
By TNN |
MUMBAI: The maximum retail price (MRP) of unbranded generic drugs will now include taxes, with no provision for local taxes. Also, the price, along with the name, manufacturing date and expiry date, will be printed in Hindi. This will come into effect from October 2, said Ram Vilas Paswan, Union minister for chemicals and fertilisers.
The prices of these drugs are expected to fall as manufacturers have accepted the government’s recommendation to limit margins up to 35% of the manufacturing cost. Mr Paswan said,
“Generic drug manufacturers have been making huge margins on drugs. A drug with a wholesale price of Rs 1.20 was being retailed at over Rs 35 in medical stores. The cost of these drugs will come down substantially because manufacturers cannot charge margins beyond 35% on them.”
He was speaking on the sidelines of the launch of ‘India Chem ’06’ organised by the department of chemicals & petrochemicals, and Ficci.
Meanwhile, the government has constituted a 16-member committee to advise on price regulation of essential drugs. The committee will submit its recommendations to the government by September 30. The suggestions will be incorporated in the pharma policy that is to be tabled before the Cabinet in the first week of October.
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The government plans to regulate 354 essential drugs, a move opposed by the industry. The committee will focus on the interpretation of the Supreme Court’s order on the control of drug prices, public-private partnership on insurance for below-poverty-line families, ways to encourage R&D, concessional prices for procurement by the government, and the role of competition in bringing down prices. Start a SIP with as low as ₹500 with ET Money App!
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