Month-long extension for drug firms only to relabel stocks

The Department of Pharmaceuticals issued a notification on Thursday that the 30-day extension given by the government to drug firms on Wednesday was only for re-packaging or relabelling of stocks to sport new prices of essential medicines and companies and pharmacists would have to comply with the new prices within the 45-day deadline.

The department explained that the 30 days extension from the expiry of 45 days had been granted because the finance ministry’s order for exemption of excise duty on repackaging or relabelling of such products was issued only on July 29, when the first deadline ended for drug makers to implement the new price regime.

The move comes in the wake of the industry complaining that the 45-days time period was too short to liquidate existing stocks from the market and replace these with newly-priced medicines. The government said the latest extension would help the industry to comply with the norm while enjoying the excise duty exemption extended by the finance ministry. It has, however, remained firm that in the public interest, companies must comply with the new prices within 45 days of price notification by the National Pharmaceutical Pricing Authority.

The move has failed to appease the industry, which feels that it is impossible to comply with the 45 days time period because even if existing stocks in the market are not replaced, companies would be required to send price lists to all stockists and chemists across the country, for which they need time.

Other patient groups and experts have also criticised the government’s mechanism to implement the new pricing order.