The central government has reiterated its claim on the 'voluntary reduction of trade margins for generic medicines' in the Rajya Sabha on November 23, 2006. In a written reply to a parliamentary query, B K Handique, Minister of State for Chemicals and Fertilizers, stated that pharma companies agreed to voluntarily restrict the trade margins for generic medicines to 15 per cent for wholesalers and 35 per cent for retailers.
"A compilation of the list of 886 such medicines, whose prices have been voluntarily reduced by 11 companies as a result of this cap on trade margins have been brought out. It covers formulations in all dosage forms such as tablets, capsules and syrups, which find usage in the treatment of a large number of diseases. The medicines covered are anti diabetics, antibiotics, cough syrups, painkillers as well as those used during the surgical operations, for the cure of the infectious diseases and for the treatment of hypertension.
The retail Price (MRP) of medicines inclusive of all local taxes has been made effective from October 2, 2006. The batches manufactured after October 2, 2006 are required to carry the MRP inclusive of all taxes," it stated.
The minister also informed that the joint committee, with majority of the members from the drug industry, constituted under the Chairpersonship of Secretary (C&PC) to suggest various initiatives for making available medicines including medicines in National List of Essential Medicines - 2003 is yet to make any concrete offer. "No concrete offer on price reduction of essential medicines under National List of Essential Medicines- 2003 has been made by the Joint Committee," it said.
The drug policies of the Government as amended from time to time are directed towards making available quality drugs at reasonable prices to the consumers in the country, he stated.