The Bulk Drug Manufacturing Association (BDMA) in Andhra Pradesh has expressed mixed reaction over the new Drug Price Control Order (DPCO) notified last week bringing a total 348 drugs under the drug price control list.
While welcoming the government's initiative to bring more drugs under price control regime, the BDMA expressed concern over the possible drop in the profit margins for the manufactures of these drugs. With the current problems faced by the industry like ban on expansions, lack of quality power and discouraging policies of the enforcement authorities, BDMA fears that manufacturers may shun from producing these essential drugs.
Speaking to pharmabiz, Capt. VVSK Shastry, assistant secretary general, BDMA said, “BDMA welcomes the governments initiative to make more drugs affordable to the poor, but at the same time it should also ensure that the Industry gets incentives from the government so that it will be encouraged to produce essential drugs. If the government forces the Industry to manufacture essential drugs under price control without offering any subsidy or incentive then definitely the producers will shut their shops as they may not carry forward for long due to continuous losses.”
When asked what impact the price control on essential drugs will have on Industry, Capt. Shastry opined that the profit margins will definitely go down for those players who are solely dependent on one product. For those who have different portfolio of products it may not have much impact as they have an option to gain their lost margins from other products.
Commenting on the Department decision to add more drugs under price control, Dr Uday Bhaskar, general secretary, AIDCOC and deputy director, APDCA said “This is a well come decision. We have been fighting for this since long with the government. Already we have been encouraging establishing generic pharmacy stores all across the state to make essential drugs available at affordable prices. With this order, it will definitely benefit the poor at large.”
When asked will the new DPCO not impact adversely on the industry’s growth, he said, “No pharma company produces drugs at a loss and even those essential drugs coming under price control will be having minimum manufacturing costs covered in the drug price. So in reality there will be no loss at all but their profit margins may fall down,” added Bhasker.