A group of major national pharmaceutical companies, IPA has hit the government on the issue of drug price control, wondering if the country was following the rule of law for the sector. In a letter written to Niti Aayog's vice president Arvind Panagariya, the IPA said that the last two years have been disturbing for the national pharmaceutical industry due to the "arbitrary and imaginative" implementation of drug policy Prices of medicines.
As stipulated under the Drugs (Prices Control) Order (DPCO) 2013, the NPPA fixes ceiling price of essential medicines of Schedule I. The government had notified the DPCO 2013, which covers 680 formulations, with effect from May 15, 2014, replacing the 1995 order that regulated prices of only 74 bulk drugs.
Regarding the future of the pharmaceutical industry in India, the Indian Pharmaceutical Alliance (IPA) said that pharmaceutical companies have become a victim of a "unbridled turf war" between the Pharma Department and the regulator Of NPPA drug prices.
"The industry is perplexed by ownership, not just by the legality, of several recent government decisions. It has begun to doubt whether the country is following the rule of law for the pharmaceutical industry," said Secretary-General Of the IPA, DG Shah. He regretted that many decisions are neither in the interest of consumers nor will they promote growth of industry.
The alliance, whose members, including major local companies such as Sun Pharma, Dr Reddy, Lupine, Glenmark, Cipla and Cadila, among others, still questioned the measures taken by the government "which does not Customers and industry. "
Due to the imaginative and arbitrary implementation of the pricing policy, the letter said it has become a nightmare because the pricing policy is flawed. And a turf war unbridled between the government (DoP) and the regulator (NPPA), "the letter said.
According to the body, this has resulted in unwarranted price fixation, open defiance of the government's corrective orders by the regulator and frustrating litigations for the industry.
"Over the past year, more than 400 multinationals and Indian companies have led the courts to resolve their grievances regarding the implementation of the price change, the random banning of fixed dose combinations (FDCs), the non- Compliance with the law in setting prices, etc. said IPA. "This is not a good sign, it is indicative of the lack of confidence in the regulatory mechanism and the administrative mechanism, be it the NPPA or CDSCO," it added.
The IPA also made a case for initiating a meaningful dialogue between the government and the industry to find amicable solutions and move forward. "A volatile domestic market cannot sustain exports," it said.
Shah said India's pharmaceutical industry is the third largest trade supplier ($ 10 billion in 2013-14) in the goods category after clothing and grains. He called Panagariya to find a stable, predictable and transparent regime for the pharmaceutical industry. "We believe that such a regime is essential for the development and growth of the pharmaceutical industry, creating jobs for educated youth and the abundant availability of quality drugs," Shah said.
The IPA added that the past two years have also been "very disturbing" due to repeated attempts in some circles within the government to introduce the patent link and data exclusivity.
"Their practices have a significant negative impact on pharmaceutical development, growth and exports, and their actions are aimed at curbing future growth by delaying the entry of generics and biosimilars and extending a high- Lack of generic competition, "said the IPA.
The alliance alleged that the multinational pharmaceutical companies have adopted certain unethical practices while seeking an intervention
