Our Bureau

New Delhi , Sept. 6

EVEN as the Chemicals and Fertilisers Ministry is hoping to put in place a new pricing policy by the month-end, the suggestion of mandatory de-branding of selected drugs has been opposed by pharmaceutical associations.

The Task Force headed by Dr Pronab Sen, Principal Advisor, Planning Commission, to explore options to bring down the prices of essential drugs, had suggested de-branding as a means to promote generic medicines. However, according to the Indian Pharmaceutical Alliance (IPA), mandatory de-branding is anti-competitive and unsafe. It could also lead to growth of spurious and counterfeit drugs.

"The shift from brand to generic means taking the choice away from the doctor to the chemist and the volume of the margin will drive the chemist's decision, not the quality of the product," the IPA said.

Mr Dara B. Patel, Secretary General, Indian Drug Manufacturers' Association, added, "De-branding causes concern. The strength of a brand instils confidence in the user." Multinational companies under the aegis of the Organisation of Pharmaceuticals Producers of India have also expressed similar views.

The Chemicals and Fertilisers' Minister, Mr Ram Vilas Paswan, told newspersons on Tuesday that the draft recommendations were discussed with various industry associations and a week's time has been given for them to respond.

"We have asked them to keep in mind the Common Minimum Programme while formulating their response, as that promises the population access to affordable medicines. At the same time, we don't want the industry to suffer," he said.

Mr Paswan said that once the Ministry finalises the policy, it would approach the Cabinet for approval by the month-end or early in October.

Some of the major recommendations in the draft policy include price control of essential drugs; fixing a ceiling price based on a weighted average of the top three brands of a molecule; and replacing the Drug Price Control Order with a new Drugs and Therapeutics (Regulation) Act.

The other suggestions include the establishment of a National Authority on Drugs and Therapeutics (NADT) by merging the offices of the Drug Controller General of India (DCGI), the Central Drugs Standard Control Organisation (CDSCO) and the National Pharmaceutical Pricing Authority (NPPA).

Price freeze won't help

THE pharmaceutical industry's proposal of freezing prices of drugs at current levels may not cut ice with the Government, as this might not result in any actual reduction of prices.

According to Government sources, the idea of fixing a ceiling price based on the weighted average of the top three brands of a molecule would be more effective in bringing down the prices. "By freezing the rates, prices will not really come down and the consumer would not benefit," they said, adding that a final decision would be taken after receiving the responses from the industry.

"The Government should not put a curb on pricing and the status quo should be maintained," said Mr Ajay Piramal, Chairman, Nicholas Piramal India Ltd, who led a CII delegation to meet Mr Paswan.

"The pharmaceutical companies, both domestic and multinational, had suggested that prices be maintained at the current levels for a year and thereafter, inflation-linked increases could be effected," said industry sources.

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