Pharmabiz
 

DPCO ENFORCEMENT IN A MESS

P A FrancisWednesday, August 7, 2013, 08:00 Hrs  [IST]

The new prices for the first batch of 151 drugs out of the total of 348 under the DPCO, 2013 was to take effect from July 29. The mandatory 45 days period already got over for these drugs after their price fixation by the National Pharmaceutical Pricing Authority. A few companies have effected changes in the prices but most companies could not make price changes of their old stocks. And the whole process of enforcement of new prices has not commenced yet as the state drug authorities are not sure what to do. Although most of the state drug controllers are ready to implement the new drug prices they have now decided to wait for some more time expecting a further direction from NPPA. The main reason for this hesitation is the Delhi high court decision granting temporary relief to Cipla and Sun Pharma in the matter of enforcing new prices within 45 days of declaring the ceiling prices. Subsequently Indian Drug Manufacturers Association and five or six other companies also got similar relief as was granted to the two companies. That would mean that drug controllers cannot enforce new prices on products of several companies now. The state drug authorities are thus justified in taking a cautious stand in not enforcing the new prices in the wake of court intervention.

The issue of 45 days time frame set by NPPA for printing new prices on the old stocks has been an issue of contention from the very beginning as the pharma companies have been taking a stand that it is impossible to recall and re-label the drugs within such a short time. The pharma companies and their associations had, therefore, warned about a possible shortage of some life saving drugs as recalling stocks from villages and other remote locations needs much more time. In the meanwhile many retail outlets have already returned the existing stocks to the wholesalers and companies for relabeling. At the same time, new stocks with new ceiling prices have not reached the trade channels in most parts of the country. An obvious outcome of this situation is a temporary phase of shortage of medicine throughout the country. Ideally NPPA should have granted the companies a much longer time frame to sell the existing stocks with new prices or should have allowed to sell the old stocks at old rates. The present confusion in the trade channels and inconvenience to the millions of patients should have been thus avoided by the Department.

 
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