The Department of Pharmaceuticals, which had held an emergency meeting with the industry in Hyderabad on July 25 to get the firsthand information on the extent of Chinese effect on the input cost of drug production and its consequences in the drug market, is learnt to have decided not to go for suo moto hike in the prices of bulk drugs. However, the Department has assured the industry of expeditious action on files regarding the individual applications for upward price revision.
Sources said that though it is almost three weeks after the crucial meeting between the authorities and the industry, the Pharma department is mum on the industry demand for a suo moto revision of prices of bulk drugs. The industry has not received any response from the government so far. Instead, it has indicated to the industry to file individual applications for an upward price revision of products.
Though the department has assured the industry that the files on price revision will be disposed of immediately, the industry is apprehensive about the outcome. Normally, the files for price revision of products take at least six months to one year for a decision. The government assurance notwithstanding, the industry apprehends that it might still take months to take a decision on individual files. By the time the government decision comes, the entire scenario might change on price levels in the market as the pharma market is witnessing high volatility these days, industry sources said.
They said that the industry is disappointed over the government's apathetic attitude towards the industry on this issue as the officials present in the meeting had assured some 'justified action in the near future' on the issue. The department of pharma had convened the meeting on July 25 last when the far cry over the acute shortage and spiralling prices of APIs, excipients and other products like solvents and chemicals being imported from China reached its crescendo. The officials present on the meeting included senior bureaucrats of the pharmaceuticals department G S Sandhu, Paresh Johri and officials of the NPPA Lalit Kaushal and Arun Jha. The industry was represented by BDMA president Narayan Reddy and others.
Industry sources said that though the prices of some of the APIs have started showing the downward trend, it is still almost double the normal price. Giving the example of paracetamol, sources said it is true that the price of paracetamol has come down from around Rs 350 to 240. But, it is still far above the usual price of Rs 120 per kg.