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Jan 06, 2012, 03.06 PM IST
The Business Standard reports that Indian Drug Manufacturers Association (IDMA), the largest body of small and mid-sized pharma companies, has taken up some concerns of the pharmaceutical industry with the government.
The matters include issues such as Chinese competition for the Active Pharmaceutical Ingredients (API) market, pharma pricing and foreign direct investment (FDI) in the sector.
“IDMA has suggested the government to issue stringent inspection norms and impose anti-dumping duties wherever necessary. It would also like the government to set up dedicated API and basic chemicals fund of $700 million to help small and large API manufacturers,” said Manish Doshi, president-elect, IDMA. The National Pharmaceutical Pricing Policy, 2011, plans to cap prices of 348 essential drugs and their combinations at the average price of the top three brands in the respective segments. Sales of these drugs form three-fifth of the country's Rs 59,000-crore domestic pharmaceutical market, said IDMA.
IDMA also wants the government to freeze prices of drugs under drug price control order (DPCO) for one year instead of the proposed two years.
“IDMA has suggested an exemption in price control to be made on all drugs under Rs 5 instead of Rs 3, according to the policy. The 16 per cent margins for retailers should be increased to 20 per cent as recommended by the Pronob Sen committee report,” said N I Gandhi, chairman, pricing sub-committee of IDMA.
According to the statement, IDMA has made representation to the government that 100 per cent FDI should be allowed since the industry needs huge investments to meet research and development (R&D) costs, brand-building costs and state-of-the-art production facility costs.
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