The minister for chemicals and fertilizers, Ram Vilas Paswan, has given instructions to the department of chemicals and petrochemicals to withdraw the application for clarification on Pharmaceutical Policy 2002 filed in the Supreme Court (SC).

Stating that there is no bar on implementing Pharmaceutical Policy 2002, the minister wanted the implementation of the policy and promulgation of new Drug Price Control Order (DPCO) that satisfies the SC instructions. In a meeting with the officials of his department, the minister also asked for bringing essential drugs as specified in the National List of 2003 to be brought under price control.

The minister's decision to withdraw the department's appeal against the Karnataka High Court Order quashing Pharmaceutical Policy 2002 is likely to put an end to the uncertainties existing on the implementation of the Policy.

As per Pharmaceutical Policy 2002, the criteria for bringing a bulk drug under price control is that the total MAT value is more than Rs 2500 lakhs (Rs 25 crore) and the percentage share of any of the formulators is 50% or more. If the total MAT value is less than Rs 2500 lakhs (Rs 25 crore) but more than Rs 1000 lakhs (Rs 10 crore) and the percentage share of any of the formulators is 90% or more, still it comes under price control. Industry observers feel that if the same criteria were applied, the number of bulk drugs that would come under price control would be about 60.

Meanwhile, Dr Pronab Sen Task Force is expected to call for wider span of price controlled medicines and suggest measures to bring down the prices of essential medicines, lower high trade margins, recommend price negotiation of patented drugs, seek fiscal and non-fiscal solutions to control of prices of HIV / AIDS and cancer drugs, and spell out options for making available low cost drugs meant for public healthcare systems, in its final report.