Industry asks govt not to cap margins on unbranded generics

Govt had received complaints from various quarters that trade margins for drugs range between 300% and 5,000%

As the government prepares to cap drug margins, manufacturers, their lobbies and traders have asked the government to only cap trade margins for branded drugs.

In a latest submission, the industry told the Department of Pharmaceuticals (DoP) that total margin of 35 per cent on branded drugs (branded generics and branded drugs) is an ideal number, said a senior official from the department.

This official said that all the stakeholders spoke in unison at a recent consultation meeting held by the government on the issue. “These bodies were also of the opinion that trade margins for unbranded drugs should not be considered,