All India Drug Action Network (AIDAN), the national network of organisations working on pharmaceutical policy issues, has accused the Union ministry of chemicals of playing into the hands of the industry by publicizing an industry 'gimmick' of voluntary price reduction on 886 formulations that has practically 'no impact on the drug price scenario of the country'. The NGO alleges that none of the top 300 brands, which constitute of over 90 per cent of the total domestic medicines sales, figure in the list of 886 medicines. The enlisted brands are not the top selling ones of its category and can have no impact on the prices, they added.
"The voluntary price reduction announced by the industry and publicized by the ministry are on insignificant brands that have little presence in the market. Further, the reduced prices are not fair prices and continues to be highly inflated thereby giving ample scope for enormous trade margins," they point out.
The ministry had claimed that the prices of drugs worth 7 per cent of the total domestic medicine market is to come down from 0.26 to 74.53per cent by the voluntary decision of the industry to reduce trade margins on 886 formulations and pass on the benefit to consumers.
According to Dr Anurag Bhargava, AIDAN, the industry attempt is to lure the government into a trade off where cosmetic price reductions lead to a liberal drug price control regime. "The government has to regulate the prices of all life saving drugs as directed by the SC and should not think of any dilution in its stand," he said.
AIDAN wanted the government to be transparent and committed towards making essential drugs affordable and accessible to patients in India and called for the control of trade margins and MRPs of all essential drugs including those sold as 'brands', 'generic generic', and 'branded generic'.