Govt may extend price caps to more drugs

Tags: News
The health ministry has formed a committee that is meeting for the first time on Tuesday to consider raising the number of drugs deemed essential and subject to price caps, people directly involved in the process said.

The panel will consider adding more drugs to the list of essential medicines, all of which would then come under price caps, one of the people said, a move to make them affordable for the 70 percent of people living on less than $2 a day.

The move, if implemented, will draw the ire of global drugmakers like Pfizer Inc, GlaxoSmithKline Plc and Abbott Laboratories, all of which have a large presence in India's $15 billion pharmaceutical industry.

The global drugmakers have already been hit by wide-ranging government-imposed price reductions and a legal system with a history of disallowing patent protection in recent years in an emerging market that is a vital growth driver for the firms.

Bringing more drugs under price controls would dash hopes for an easing of the populist drug policies of the previous government under new, business-friendly Prime Minister Narendra Modi, industry analysts said.

New Delhi last year raised the number of drugs that are subject to price controls to 348 from 74 earlier.

Health Minister Harsh Vardhan and Secretary for the Ministry of Health and Family Welfare Lov Verma did not respond to mails for comment. All the sources declined to be named because the details of the plan are not public.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Lower home loan rates signal tough fight for market share

    Barely four weeks ago, a few public sector banks reduced interest rates on time deposit schemes by 10 to 25 basis points, depending on the tenure of t

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Could prohibition mean profiteering?

In the mid 1930s, an American journalist asked Bapu if ...

Zehra Naqvi

The five universal languages of love

Love is a universal language. Don’t we all believe that? ...

Dharmendra Khandal

Time to protect our endangered wildlife species

After 65 million years of existence, the earth’s biodiversity is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture