The small scale drug manufacturers of the country has suggested the expansion of the list of SSI reserved items to include all drugs that enjoy high retail trade margins for enabling SSIs to make these drugs available at 40 per cent less than the price of the leading generic brand. The drug makers under the umbrella of Confederation of Indian Pharmaceutical Industry (CIPI) have also offered to bring down the printed MRP of 12 specific formulations by 20 per cent than that of the price of the leading brand as an attempt to bring down the cost of generic drugs in the country.
In a meeting with the senior officials of the Ministry of Chemicals and Fertilizers, the CIPI expressed their protest against the government's plans for across the board ceiling on trade margins and felt that it could be extremely harmful to their interests.
The drugs that are to be offered at 20 per cent less MRP by SSIs are Albendazole tablet, Amikacin Injection 100mg, Amikacin Injection 500 mg, Nimesulide Tablets 100 mg, Domperidone Tablets 10 mg, Calcium Carbonate tablets, Methylergometrine Inj I ml, Cetirizine tablets 10 mg, Piroxicam capsules 20 mg, Alprazolam tablets and Diazepam tablets.
According to CIPI functionaries, the reason for selecting these formulations was that they had figured in the list projected by the Union Minister for chemicals and fertilizers as the ones having trade margins varying from 500- 1000 per cent. The CIPI offer is however linked with the printed price of the leading brand. "There are several companies who have voluntarily offered reduction in MRP of select drugs. We want those reduction reflected on their printed prices. Based on that we will work out our costs which will, at any given point of time, 20 per cent less that the prevailing price of the brand leader," they explained.
The C & F Ministry is known to have called for a meeting with Indian Drugs Manufacturers Association on January 25th to listen to their views and suggestions on reducing the prices of generic drugs. The CIPI suggestion is likely to be discussed during the meeting.