'New drug policy likely by Nov 25'
The government told the Supreme Court that it was likely to notify the new National Pharmaceutical Pricing Policy by November 25, bringing in 348 essential medicines under price control. However, the government added November 25 was a tentative date, as the Cabinet is yet to take a call on it.
The apex court, which had asked the government to expedite the policy, will again meet on November 27 before it passes an order in the matter.
On October 9, the Department of Pharmaceuticals (DoP) filed an affidavit in the Supreme Court that a Cabinet note has already been circulated for inter-ministerial consultation and the ministries have been asked to furnish their views by October 11.
“On receiving the comments from the ministries/departments, a Cabinet note will be submitted to the Cabinet Secretariat by October 15, 2012. Thereafter, the Cabinet would take up the policy for consideration and an appropriate decision in one of its forthcoming meetings,” D S Kalha, Secretary, DoP said in the affidavit.
In its affidavit, the DoP said that the formulation of the pricing mechanism for essential medicines will take place according to the policy making process followed in the past and the government will issue a fresh Drugs (Prices Control) Order (DPCO) to launch the proposed policy after it is decided by the Cabinet.
This assumes significance in the light of the observation made by the SC during its previous hearing, which had triggered a lot of concern among pharmaceutical companies.
Last week, an SC bench, headed by justice G S Singhvi, had said, “…we make it clear that the government should not alter the price structure of the drugs as notified vide notification dated 13.07.1999 and similar notifications which may have been issued thereafter.”
While a Group of Ministers (GoM) has already recommended a market-based pricing mechanism, under which prices of 348 essential drugs will be capped at the weighted average of all drugs with more than 1 per cent market share, the court’s observation was seen in favour of retaining the existing pricing structure based on cost-plus formula.
The DoP’s affidavit has triggered hope amongst drug makers who were worried that a cost-plus formula would impact their revenues, while also bringing in more drugs under the purview of price control.
The apex court’s hearing was triggered by a public interest litigation plea filed in 2003 by the All India Drugs Action Network and others complaining that currently only around 74 drugs are placed under the DPCO, 1995 making rest of the medicines beyond the reach of the common man.