Wednesday, July 9, 2008

ASSOCHAM calls for 20% hike in drug price

by Jenny Hodge

The Associated Chambers of Commerce and Industry of India (ASSOCHAM), the apex business body, has written a letter to the Prime Minister, urging him to allow domestic pharma companies to hike the prices of non-scheduled drugs by 20% each year, in view of their rising input costs.

Assocham fears that pharma companies might send their units abroad, as Ranbaxy has, if unwarranted regulatory pressures are not eased for deciding drugs’ prices that are outside price control.

The ASSOCHAM in the interest of its constituents opposes the directive to bring the price cap down to 10%, arguing that this one step alone has made a complete mockery of setting up of Group of Ministers, as it has yet to take a stand on this issue

According to the Chamber, the price increases of drugs under price control should be linked with inflation and within a fixed time line of two weeks.

The Chamber believes that the Indian pharmaceutical industry is facing major hurdles to its growth both within India and globally.

Undue regulatory pressure is frustrating domestic pharma companies to such an extent that if immediate corrective measures are not taken, many life savings drugs are likely to go out of production.

The Chamber commented that it is ironic that the Indian industry, which was encouraged in 1991 to meet global challenge, is today being held back from growth by archaic, short-sighted policies and red tape.

 

 

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