NEW DELHI: The new pharmaceutical policy will bring more drugs under price controls, while seeking to rationalise the excise duty on pharmaceuticals, streamline the system of Central Government drug procurement and promote generic medicines.

This was announced here on Saturday by Chemicals and Fertilisers Minister Ram Vilas Paswan, who said the draft National Pharmaceuticals Policy, 2006, aimed at making drugs available to those living below the poverty line.

Addressing a meeting of the Parliamentary Consultative Committee, attached to his ministry, he said that in addition to the existing 74 drugs and their formulations, the 354 drugs in the National List of Essential Medicines, 2003, had been included in the draft policy. Apart from the cost plus method, he said other systems of price control like negotiated prices, differential prices, reference pricing and bulk purchase price had been proposed.

Mr. Paswan said the maximum allowable post-manufacturing expenses (MAPE), now 100 per cent over manufacturing cost, were proposed to be revised to 150 per cent in general and 50 per cent additional MAPE for R&D intensive companies. For the existing 74 drugs under price control, he said MAPE would remain at one year to avoid a sudden increase in prices.

Some exemptions from price control would be given to drugs developed in India through product patent, process patent and new drug delivery systems for five years. Similarly, vaccines and biological drugs, drugs for sale to hospitals, drugs whose maximum retail price is Re. 1 per capsule and generic formulations would be exempted, he said.

Mr. Paswan said the new policy would encourage production of critical bulk drugs with emphasis on good manufacturing practices. There would be a Settlement Commission for settling old dues under the Drugs (Prices Control) Order, 1979, while a new DPCO would be issued to replace the existing DPCO, 1995. A Drug Price Monitoring Awareness and Accessibility Fund (DPMAA) would be set up along with pharma parks.

Mr. Paswan told the members that the drugs policy sought to strengthen the drug regulatory system and the patent office. It focuses on research and drug development clinical trials. He said the policy laid emphasis on developing human resources in pharmaceutical sciences by opening more institutions.

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