Regulate entire pharmaceutical supply chain, not just retailer: The wider industry impact

Regulate entire pharmaceutical supply chain, not just retailer: The wider industry impact

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Pune: All India Drug Action Network (AIDAN), an independent network of non-governmental organisations (NGOs) and health action groups, while welcoming the National Pharmaceutical Pricing Authority’s (NPPA) 30% cap on hospital and retailer margins for anti-cancer medicines, has called the initiative a half-baked price control that leaves the biggest source of profiteering untouched: manufacturer pricing. The govt should extend the principle of ‘cost plus defined margin’ to all medicines sold in the market and not restrict it only for Janaushadhi shops and make the necessary amendments in the Drug Price Control Order 2013, which governs the prices of medicines in India. ” Under Supreme Court pressure, the govt brought the Drug Price Control Order-2013 (DPCO-2013) which regulated prices of 348 ‘essential medicines’ (those included in the National List of Essential Medicines-NLEM) of the 1,000 medicines. Of these ‘essential medicines’, just 63 anti-cancer medicines were brought under price control. Dr Phadke added that about 55 anti-cancer medicines in the NPPA order are under patent protection and there is no price reduction of these molecules. In these cases, the govt should use its right to invoke ‘Compulsory Licensing’ by using Section 84, or 92 or 100 of the Indian Patents Act 1972. Invoking such provisions would allow an Indian company to manufacture and sell the patented medicine concerned 90% cheaper than the price of the originator. ”

Following Supreme Court ’s directives, NPPA capped the cancer drugs which may bring meaningful relief for some formulations; however, costly originator brands, patented medicines, brand premiums and aggressive marketing-driven pricing remain outside the capping initiative highlighted by AIDAN. The group demanded that prices of anti-cancer medicines can be reduced to one-fourth if govt addresses effective price regulation of all anti-cancer medicines and excessive profiteering by manufacturers, especially by MNCs. Dr Phadke added the govt must learn from its own venture of Janaushadhi shops. Dr Gopal Dabhade, another member of AIDAN, added, “The govt has set up a system to procure quality medicines from manufacturers through open, competitive tendering and to supply these to Janaushadhi shops. Here medicines are sold only under generic names and their MRP is set by the govt by allowing reasonable profit for the manufacturer and traders. Dr Dabhade added, “Exclusion from this list does not mean that a medicine is non-essential for the patients who have cancer. All anti-cancer medicines recommended in standard medical literature but which are outside the NLEM are also essential for some patient or the other and hence all of them should be under price regulation. Dr Phadke added, “This is essential to protect the patients from predatory monopoly pricing.

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