Drug sector seeks dialogue with govt on pricing row

NPPA on July 10 brought over 100 non-scheduled drugs under price control regime

After losing their petition in the Delhi High Court seeking a stay on the drug price control order, the industry has called for a dialogue with authorities, saying such issues are best ironed out through dialogues and not resolved in court rooms.

“I think unless there is dialogue with the appropriate authorities, we are going to run into these kind of issues again. These issues are not to be settled in court rooms,” a senior official of the Organisation of Pharmaceutical Producers of India (OPPI), who did not wish to be named, said on the sidelines of an event here over the weekend.

It can be noted that the National Pharmaceutical Pricing Authority (NPPA) on July 10 had brought over 100 non-scheduled drugs under price control regime as per paragraph 19 of the DPCO (drug price control order).

The order brings as many as 120 anti-diabetic formulation packs and 247 cardio-vascular formulation packs under price control. This has disappointed the pharma industry.

Two associations of drug manufacturers— the Indian Pharmaceutical Alliance (IPA) and the OPPI — have challenged the order in the Bombay and Delhi high courts, respectively and have lost the case in the Delhi High Court.

On August 1, the Delhi High Court had dismissed a petition filed by the OPPI seeking a stay on NPPA’s July 10 order fixing prices of over 100 non-scheduled drugs, but sought responses from the pricing authority by September 29.

The court also observed that paragraph 19 of the 2013 DPCO does not restrict price fixation to only essential drugs.

Paragraph 19 of the DPCO, 2013, authorises the NPPA in extraordinary circumstances, if it considers necessary so to do in public interest, to fix the ceiling price or retail price of any drug for such period as it deems fit.

“The pharma industry is more than willing to partner the government to achieve the vision of healthcare access for all. Focus on human resource augmentation, last-mile availability of medicines and stronger healthcare distribution will catalyse access to healthcare,” OPPI president and Sanofi India managing director Shailesh Ayyangar said.

OPPI director general Ranjana Smetacek joined in saying: “Understanding the challenge is critical to achieving universal healthcare access and finding sustainable solutions. The government needs to lead the way in collaborating with the industry and all stakeholders. We need holistic solutions and all the stakeholders will have a role to play and the industry is willing to step forward and do its part.