Pharma firms seek govt nod to hike drug prices by 20%
The law permits only a 10% rise in prices of non-scheduled medications
Pharma companies have asked the government to allow drugmakers to raise prices of all non-scheduled pharmaceuticals by 20% to meet growing input costs, according to reports. Non-scheduled medications are currently allowed a maximum annual price rise of 10%.
The Indian Drugs Manufacturers’ Association (IDMA) in a representation to health minister Mansukh Mandaviya, Niti Aayog, secretary department of pharmaceuticals, and chairman of National Pharmaceutical Pricing Authority (NPPA), has highlighted the “serious situation” pharma companies are faced within the wake of rising input costs, The Economic Times has reported.
‘Emergency assistance’ sought
It requested that drugmakers be “permitted to increase the pricing of non-scheduled formulations by an additional 10% over the 10% authorised for non-scheduled formulations” due to “exceptional circumstances.”
The report quoted IDMA as saying that rising input costs have impacted all cost categories, including crucial beginning materials, packaging materials, and transportation expenses.
It sought “one-time emergency” assistance to deal with the abrupt spike (DPCO) by invoking special power under para 19 of the Drug Price Control Order.
It stated that the 10% rise could be reversed after the surge in input costs subsides
Rising input costs
They also demanded that all scheduled formulations’ prices be hiked by 10% with immediate effect. Scheduled medications are those that have a set price and are available at a low cost.
According to the IDMA, prices of some major APIs have risen by 15-130%, with paracetamol seeing a 130% increase. Similarly, excipient prices have increased by 18%-262%. Glycerin and propylene glycol, solvents used in all liquid medicines such as syrups, oral drops, and sterile preparations, have seen price increases of 263% and 83%, respectively.
According to the IDMA, intermediate prices have risen between 11% and 175%, with pencillin G seeing a 175% increase.
IDMA said rising costs could lead to stockouts, and it is pleading with the government to intervene immediately.
The report quoted them as saying that they are concerned that the strong pressure on operating margins may result in stockouts and shortages, even for important formulations in trade, hospitals, and government institutional supply.