HomeNewsBusinessGovt initiates new process to identify essential medicines

Govt initiates new process to identify essential medicines

July 24, 2019 / 09:42 IST
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Highlights: - Committee to meet stakeholders on July 25 to shortlist drugs that should be available in assured quality
- Stakeholders have been asked for their feedback on cardiology and cancer drugs
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The prices of some drugs used for treating cancer, cardiac diseases and diabetes are likely to be cut as the government initiates a new process to identify essential medicines and bring some of them under price control.

A newly-constituted committee on the National List of Essential Medicines (NLEM) will meet stakeholders on Thursday to shortlist drugs that should be available in adequate numbers and assured quality, according to a senior government official.

The NLEM committee, headed by Balram Bhargava, secretary, Department of Health Research and Director-General of the Indian Council of Medical Research, will decide on essential medicines and send the list to a second committee, comprising Rajiv Kumar, Vice-Chairman of NITI Aayog, Preeti Sudan, Secretary of the Health Ministry, and P Raghavendra Rao, Secretary of the Department of Pharmaceuticals, for deciding which ones are to be brought under price control.

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This is a departure from the existing mechanism in which all essential medicines were brought under price control. Under the previous mechanism, the health ministry prepared a list of drugs eligible for price regulation, following which the department of pharmaceuticals, which comes under the ministry of chemicals and fertilizers, incorporated them into schedule 1 of DPCO (drug price control order). Following this, the National Pharmaceutical Pricing Authority (NPPA) fixed the prices of drugs in this schedule. “The list, once adopted by the government, would become part of the drug price control order, and hence, the price is regulated," said another government official.

Medicines and devices listed in NLEM must be sold at the price fixed by NPPA, while those in the non-scheduled list are allowed a maximum annual price hike of 10 percent.