The Union Chemicals Ministry has suggested a series of measures including the promotion of public awareness about drug prices of generic and comparative drug prices to utilize the overcharged amount that would be deposited by the drug companies in the proposed Drug Price Monitoring and Awareness Fund (DPMAF).
Expenditure for operating and strengthening the price monitoring mechanism on a continuous basis, computerization of NPPA and its implementation agencies, setting up of online electronic data filing system with NPPA are among the major suggestions made by the ministry.
The DPMAF would be created into which the amounts remitted by the companies as fine, penalties, user-charges would all be pooled in. The creation of the fund is part of the proposed bill planned by the ministry. The necessary procedures and guidelines for maintaining the fund will be finalized only after the enactment of the bill in the Parliament.
As per the current plans the amount will be utilised to reward informers from the public who at their own initiative informs the authorities on the ongoing overcharging by drug companies. It will also be used to reward drug controllers and inspectors who have shown exemplary performance in price control and monitoring work.
The money from DPMAF may also go into funding studies on the drug prices, production and availability of drugs, impact of patents on drug prices, studies regarding price policy of other countries and negotiation system of patented drugs.