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After a decade of its proposal, DoP still struggling on pricing of patented drugs
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Ramesh Shankar, Mumbai
November 23 , 2016
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Almost a decade has passed since the proposal was first mooted, but the
Department of Pharmaceuticals (DoP) could not yet finsalise a national
policy on pricing of patented drugs before they are imported into the
country, thanks to the pulls and pressures being exerted by different
stakeholders in the industry.
The issue of pricing of patented
drugs dates back to early 2007 when the DoP initiated steps to frame a
method to make sure that the drugs patented abroad remain affordable as
and when the multinational companies launch them in India. The DoP had
held a series of meetings of the concerned parties and sought proposals
from the industry associations to create a methodology for price
negotiation of drugs and medical devices patented abroad and are
marketed by multinational companies in India.
The government then
formed a panel to look into the matter. The panel was asked to suggest a
method of reference pricing, price negotiations or differential
pricing, etc. that could be applied for pricing of patented medicines
and medical devices before their marketing approval in India. After
several years of dilly-dallying on the issue, the panel submitted its
report to the DoP in February, 2013. In its report, the committee had
recommended a formula on price negotiation of patented drugs, linking it
to the per capita income in the country. It also suggested setting up a
committee headed by the chairman of the NPPA to decide the price of
patented drugs before they are marketed for use in India.
Immediately
after the submission of the report by the panel, the DoP asked the
stakeholders and experts to send their comments and suggestions to take a
final view on the report. But, as it received diverse opinions from
different stakeholders, the DoP then decided to constitute an
inter-ministerial committee to look into the issues and suggest ways and
means to fix the prices of patented drugs in the country.
So, an
inter-ministerial committee of joint secretaries of different
ministries was formed by the DoP in February 2014 to look into the
issues and suggest ways and means to fix the prices of patented drugs in
the country. The new inter-ministerial committee of joint secretaries
was constituted under the chairmanship of Shambhu Kallolikar, then joint
secretary (DoP). Other members of the committee are joint secretary,
department of industrial policy and promotion (DIPP); joint secretary,
ministry of health and family welfare; and member secretary national
pharmaceutical pricing authority (NPPA). Director (DoP) BK Singh was the
convener of the new committee.
Since then, the committee has
held several rounds of deliberations and negotiations with the
stakeholders and others. But, it is yet to take a final call on the
issue which has been pending the department for almost a decade now.
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