Facing a modest 0.6% hike in medicine prices this year, pharmaceutical companies are grappling with the rising costs of raw materials fueled by global unrest. Starting April 1, essential medications such as pain relievers and antibiotics will adju...
New Delhi: Pharma companies are finding little solace in the government's annual medicine price revision, capped at a marginal 0.6% this year, as war-driven input costs continue to spiral and crimp profits, people in the know told ET.
The industry, which is reeling from the ripple effects of the global conflict on raw material prices, is concerned about the WPI-linked pricing. Pharma lobby groups are now gearing up to approach the government seeking relief and exemption from the WPI, said the people cited above.
"Glycerine, propylene glycol, solvents used in every liquid preparation including syrups, oral drops, and sterile preparations have become costlier. Prices of intermediates have also gone up substantially. Keeping this in view, we need a better hike and will present our case before the NPPA," a representative from a pharma lobby group said.
Prices of essential medicines such as painkillers, antibiotics and anti-infectives, anti diabetics and cancer drugs will see a modest increase from April 1.
ADVERTISEMENT
The government will allow 0.6% increase in prices of drugs under the National List of Essential Medicines (NLEM), in line with the annual change in the wholesale price index. The adjusted prices will cover around 1,000 drugs on NLEM. Price changes for scheduled drugs are allowed once a year.
"There's hardly anything to cheer for," an executive said.
The list of essential medicines includes drugs like paracetamol, antibiotics such as azithromycin used to treat bacterial infections, anti-anaemia medicines, vitamins, and minerals. Some steroids are also on the list. The industry saw two major price hikes of 12% and 10% in 2023 and 2022, respectively and has been demanding a substantial increase in prices to offset rising input costs.
ADVERTISEMENT
According to industry experts, the prices of some key active pharma ingredients, solvents have risen substantially due to the ongoing war and this increase will hardly help.
