Govt to replace drug price control system: Sources
Published on Wed, Oct 18, 2006 at 13:15 | Source : Moneycontrol.com
Updated at Wed, Oct 18, 2006 at 21:09
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Govt to replace drug price control system: Sources
CNBC-TV18 has learnt from sources that the government will bring in an act to replace the drug price control system. The government could impose a price limit on any drug manufactured in India or abroad, say sources.
The government would also determine different sets of prices of drugs, one that will be sold at market price and another sold to the government for public health needs. Importantly, certain Medical devices like stents, which are becoming increasingly popular for heart patients and are often higly priced will also be brought under the price control.
Moreover, to regulate production and distribution of drugs, manufacturers could also be told to sell bulk drugs to other manufacturers.
Trade margins for distributors and retailers would also be fixed by the government from time to time. In keeping with its promise to boost original research, the government has also made enough provisions to reward innovative research done by drugmakers within the country.
Thats not all. The government will also have the power to approve a brand name and can prevent changes in composition of products marketed under approved brand names. The act also provides for a Drugs and Pharma Appelate Tribunal to be set up for the settlement of cases of price overcharging.
All appeals against orders passed by the national pharma pricing authority would be heard by the tribunal. The intention is not just to temper pricing powers of manufacturers but also to check abuse of regulatory powers. The Draft Act has been circulated to key ministries, comments from whom are expected by the month end.
