Pharma policy seeks to drug trade margins low at 15-35 per cent

New Delhi, July 1 (UNI) The draft National Pharmaceutical Policy 2006 seeks to strengthen the Drug Regulatory System, the patent regime besides fixing generic drug trade margins at 15 per cent for whole-sellers and 35 per cent for retail which earlier ruled at above 2000 per cent in the case of some drugs.

It focuses on research and drug development and lays emphasis on developing human resources in pharmaceutical sciences by opening more institutions on the pattern of the National Institute of Pharmaceutical Education and Research (NIPER).

The policy also aims at providing a better access to anti-cancer and anti-HIV/AIDS drugs to the patients, Chemicals and Fertilizers Minister Ram Vilas Paswan told the Parliamentary Consultative Committee members attached to his Ministry here today.

Mr Paswan said the policy would rationalise the excise duty on pharmaceuticals, streamline bulk procurement of drugs by the Government besides promoting the generic medicines.

The new proposed policy will also encourage production of critical bulk drugs in India with emphasis on good manufacturing practices laying greater thrust on pharma exports and on improving the retail system for an efficient network for distributing drugs.

A Pharmaceutical Advisory Forum would be set up at the national level besides an advisory committee in the National Pharmaceutical Pricing Authority (NPPA) at its head office and five in different regions.

In addition to the existing 74 drugs and their formulations, as many 354 drugs would be listed as essential drungs as per the report of the National List of Essential Medicines (NLEM), 2003.

The Maximum Allowable Post-manufacturing Expenses(MAPE), presently 100 per cent over the manufacturing cost, be revised to 150 per cent in general and 50 per cent additional MAPE for R&D intensive companies.

Maximum Retail Price (MRP) for drugs would be inclusive of all taxes as in the case of all other packaged commodities.

A new Drugs (Prices Control) Order would be issued under the Essential Commodities Act 1955 to replace the existing DPCO, 1995 besides re-structuring and strengthening of the National Pharmaceutical Pricing Authority (NPPA) for greater computerization and better monitoring. Price Monitoring Cells in the State Drug Controller Offices would be funded by the Centre.

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