There are 29 other bulk drugs under price control now. According to the second part of the forthcoming pharmaceutical policy, the prices of these are proposed to be freed. Bulk drugs form the basic ingredients for formulations, which are forms in which medicines are consumed, like tablets, capsules and syrups.
Draft of Part B of the policy also proposes some exemptions in the list of 'generic generic' drugs -- as opposed to branded generics -- and those that are primarily used in hospitals.
"Of the 354 drugs, only single-ingredient formulations, that too of strengths specified in the essential medicines list, would be price controlled," said a chemicals and petrochemicals department official.
This implies that the alternative
formula based on "weighted average price of the top three brands by value" may be jettisoned by the ministry. The formula was suggested by a taskforce headed by Pranob Sen.
However, as anticipated, price negotiations on patented drugs (as suggested by the taskforce) are going to be a part of the policy. There would be differential pricing too, for the public health system and the market for such drugs.
"All the drugs in the list would be price-controlled for sure. While the cost-based formula on 354 drugs would bring 33 per cent of the market under price control, the weighted average method would bring in almost 60 per cent as it includes all combinations and dosages of bulk drugs", explained the official.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
