Industry Flays Inclusion Of More Drugs Under Price Control Regime

The drug industry has still not reconciled itself to the directive of the Union government which has shot down the possibility of removing any bulk drugs from the list of scheduled items currently under price control. The drug manufacturers have said the decision would send the wrong signals to investors both within the country and from abroad.

The department of chemicals & petrochemicals (DC&PC) has, after sleeping over the plea of the drug industry, rejected its demand for exclusion of 19 drugs which have come under the Drug (Prices Control) Order (DPCO) of 1995. The move has triggered widespread dissent in the domestic drug-manufacturing sector which has also protested the DC&PCs intention to include more drugs under the DPCO. The decision as shocking and one that would send the wrong signals to investors , the Indian Drug Manufacturers Association and the Organisation of Pharmaceutical Producers of India(OPPI) said.

That it would provide a setback to research and development (R&D) efforts working towards the discovery of newer and better medicines.

The negative decision has come at a time when some of the producers have initiated large investments in R&D, said the IDMA and the OPPI. The decision is contrary to the governments declared policy for deregulation, liberalisation and transparency, they said.

Stressing their objection was to the incorrect inclusion of 19 drugs, the two principal associations have pointed out that the ministry has repeatedly stated that the reported errors in the price control list would be corrected soon. The government even stated that a committee is examining the issue regarding the wrong inclusion of the 19 drugs.

The two organisations said that the government should raise the turnover criterion for the purpose of price control from Rs 4 crore to a higher amount by applying the wholesale price index increase so as to reduce the span of control.

Though OPPI is a party to the joint demand, the industry has demanded that the government should consider, for the purpose of determining competition, not only the number of bulk drugs producers in India but also the producers worldwide as imports can now be freely undertaken.