Cabinet likely to discuss pharma purchase policy from CPSEs

Policy will lay down number of drugs and price at which Centre govt and affiliate hospitals will buy drugs from govt-run companies

The union cabinet is expected to discuss a policy for purchase of pharmaceuticals from state-run companies for use in government hospitals and programmes in a meeting likely to be held tomorrow.

Commonly known as the Preferential Purchase Policy for Pharmaceuticals (PPP) from Central Public Sector Enterprises, the policy will lay down the number of drugs and the price at which central government and its affiliate hospitals will purchase drugs from government-run companies for the next 5 years.

The last such policy was implemented in 2006 and was valid for 5 years. It had laid down the rules under which around 102 drugs were to be purchased for government hospitals and programmes from state-run drug units. The drugs were purchased at a 35 per cent discounted price.

Officials in the know, the new policy is almost expected to be a continuation of the old one, but with some minor changes. The policy is critical for smooth running of government health schemes like National Rural Health Mission (NRHM), Central Government Health Scheme (CGHS), Defence and Railways.

The central sector drug companies likely to be impacted by the policy include Indian Drugs and Pharmaceutical Ltd (IDPL), India’s largest central sector pharma PSU and Hindustan Antibiotics Ltd, many of whom have been declared sick by BIFR.