Swadesh Jagaran Manch allegations against industry baseless: IPA

Viswanath Pilla Moneycontrol

The Indian Pharmaceutical Alliance (IPA), the lobby group that represents top Indian drug makers, said the industry doesn’t have the powers to influence Department of Pharmaceuticals or Health Ministry, and called allegations raised by RSS affiliate Swadeshi Jagaran Manch (SJM) as baseless.

“I wish industry had that power, if we had the power we would have dismantled it (NPPA) two years ago,” said DG Shah, Secretary General of IPA to Moneycontrol over telephone.

“Who are we to tell Department of Pharmaceuticals (DoP) or Health Ministry to dismantle NPPA,” Shah questioned.

Shah said the industry is very unhappy with NPPA.

“Its impact on results is already known. Our growth has declined by 40 percent -- from 15 percent in 2015 to 9 percent now. So, it’s 40 percent decline; we have lots of issues. Even the government is unable to control NPPA, several government orders are not implemented," Shah lamented.

"We have written to the government about unfair implementation of DPCO by NPPA; we said that it should not be arbitrary," he added.

In a strongly-worded letter to Prime Minister Narendra Modi, RSS affiliate SJM has alleged that several government departments including Niti Aayog are working towards systematically dismantling drug price control system to benefit pharmaceutical companies.

SJM said it is deeply concerned that prices of most essential medicines are too high for the majority of the people and contribute towards the impoverishment of millions each year.

SJM said the industry influenced DoP to replace the cost-based mechanism with irrational market based formula that legitimized profiteering and is against the interest of people.

“Pharmaceutical companies marketing these medicines are making profits in the range of 500- 4000 percent and that too after imposing price controls," SJM alleged in the letter.

The letter, reviewed by Moneycontrol, written by SJM's All India co-convenor Ashwani Mahajan accused bureaucrats belonging to three ministries — Health and Family Welfare, Commerce and Industry and Chemicals and Fertilisers and Niti Aayog — of colluding with pharmaceutical industry to dismantle price control system.

SJM praised drug price regulator NPPA for capping the stent prices and the prices of several medicines for cardiovascular disease and diabetes, using special powers vested with the government to act in the public interest under the DPCO 2013.

"These activities have not been liked by the above mentioned ministries and secretaries, particularly the DOP and plans are afoot to sabotage the NPPA, possibly by dismantling it altogether," it added.