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Gireesh Babu, New Delhi March 25 , 2022
The Department Related Standing Committee (DRSC) on Chemicals and Fertilisers has recommended the Department of Pharmaceuticals (DoP) and National Pharmaceutical Pricing Authority (NPPA) to frame a new price control regime specific for medicines and medical devices for Covid-19 management considering that new waves of the pandemic are emerging and there are non-scheduled formulations, which are out of price control, essential for its treatment.

The Committee also recommended the DoP in Coordination with the ministry of health and family welfare (MoHFW) to submit a proposal to the goods and services tax (GST) Council to explore the possibility of exempting all the essential medicines and medical devices used for the treatment of Covid-19 from the purview of GST.

The DRSC chaired by Member of Parliament Kanimozhi Karunanidhi, in its 31st report on availability of medicines and medical devices for Covid management, observed that the manufacturers are at liberty to fix the price of medicines like remdesivir, which are non-scheduled formulation, though the price of the drug has been brought under Rs. 3,500 per vial voluntarily by the manufacturers.

The Department of Pharmaceuticals has informed the Committee that, remdesivir being a non-scheduled formulation, the manufacturer has liberty to fix its price. However, due to proactive intervention of the government, MRPs of various brands of remdesivir that varied up to Rs. 5,400/ per vial have been reduced voluntarily by the major manufacturers/marketers of the remdesivir injection (lyophilized) to less than Rs. 3,500.

The DRSC opined that since waves after waves of the Covid-19 pandemic is hitting the world including our country, it is mandatory that the prices of all the Covid-19 medicines and medical devices are controlled by the government so as to make them affordable for the common man.

“The Committee, therefore, recommend that the Department of Pharmaceuticals and NPPA to frame a new price control regime specific for Medicines and Medical Devices for Covid Management where the distinction between the scheduled and non-scheduled drugs may be done away with and all such medicines and medical devices are put under price control with no annual increase in prices allowed till the pandemic is entirely over in the country,” it said.

“The Committee hope the Department of Pharmaceuticals and NPPA will understand the gravity of the situation and will take immediate necessary action on this recommendation within a stipulated time frame and will inform the Committee about the same in the action taken replIes,” it averred in the report tabled in the Parliament on March 22, 2022.

According to the data from the DoP, the price of remdesivir has been revised by at least seven manufacturers voluntarily after the intervention of NPPA, reducing the price of Cadila Healthcare’s Remdac from Rs. 2,800 to Rs. 899; Cipla’s Cipremi from Rs. 4,000 to Rs. 3,000; Syngene International’s RemWin from Rs. 3,950 to Rs. 2,450; Dr Reddy’s Laboratories’ Redyx from Rs. 5,400 to Rs. 2,700; Mylan Pharmaceuticals’ Desrem from Rs. 4,800 to Rs. 3,400; Hetero Healthcare’s Covifor from Rs. 5,400 to Rs. 3,490; and Jubilant Generics’ Jubi-R from Rs. 4,700 to Rs. 3,400 per vial, which was announced in April 17, 2021 through an official memorandum from the price watchdog.

The prices of oxygen concentrators are also different since they are non-scheduled medical devices under voluntary licensing framework, but the NPPA has imposed trade margin rationalisation and no overcharging case has been reported with respect to the oxygen concentrators.

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