Govt cant allow pharma cos to get away with higher margins: Paswan

New Delhi, July 18 (UNI) Union Chemicals, Fertilisers and Steel Minister Ram Vilas Paswan today dismissed as 'baseless' the pharmaceutical industry's assertion that the proposed Drug policy envisaging price control over more medicines would hit its growth and said the companies could not be allowed to get away with margins more than 35 times.

''How come the government could be mum when the cost of a medicine is only Rs 1.20 and is being sold at Rs 35, that too, with a Maximum Retail Price (MRP) print line to that effect, said Mr Paswan at a press conferece here.

''The new Drug policy has assured 100 per cent margin on each medicine and 150 per cent on a formulation that comes to the market with an R&D input... what else the industry wants,'' said the minister.

He added that the industry should also keep the national interest in mind.

''Lust should not be allowed prevail upon eveyrthing else.'' The new Drug policy has as many as 354 essential drugs under the price contol net against the earlier 74. And, the list of essential drugs has been supplied by the Ministry of Health and Welfare as per the directions of the Supreme Court issued in 2002, he added.

Earlier, 25 per cent of the medicine market fell under the price control category The new enlarged list would bring only 8 per cent more market under this category.

Against the existing policy thrust of restricting monopoly of pharma companies, the new policy gives emphasis on supplying the life saving drugs to common people at reasonable prices.

He said soon the policy would be placed before the Cabinet for approval.

The minister, who recently visited the Japanese chemical industry, said the Mitsubishi Chemicals Company (MCC) had announced to expand Purified Teraphtahlic Acid (PTA) manufacuring facilties at Haldia from 4,70,000 tonnes to 12,70,000 tonnes with an addtional investment of Rs 1,665 crore.

Besides this the Japanese pharma industry evinced a keen interest in forging collaboration with Indian counterparts for contract manufacturing and conducting clinical trials in India.

India will be holding 4th International Exhibition and Conference- the largest chemical show at Mumbai from November 8 to 10 this year and expects participation of about 125-130 companies from 15 foreign countries.

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