The Prime Minister's Office (PMO) has asked the Ministry of Chemicals & Petrochemicals to verify the authenticity of media reports revealing that the prices of drugs manufactured in the excise free zones have about 100 per cent variation in comparison to other areas, it is learnt.

Following this, the ministry entrusted the task of verifying the facts with the National Institute of Pharmaceutical Education and Research (NIPER), Chandigarh. NIPER is learnt to have submitted its report to the ministry a few days ago, corroborating the news reports. The ministry is yet to forward its opinion to the PMO, informed sources told Pharmabiz.

They said the PMO's concern on increase in drug prices comes in the wake of the issue being brought to its notice by a few consumer organisations and small scale pharmaceutical industry associations like the Confederation of Indian Pharmaceutical Industries (CIPI). Sources said the PMO is likely to bring this issue before the notice of the concerned ministries in the soon to be convened meeting to finalise the Pharmaceutical Policy 2006.

As reported in Pharmabiz, CIPI had mobilised and publicised an indicative list of 16 medicines where the prices are in huge variance with the ones manufactured in the excise free zones and rest of India. The list included a comparative price of drugs manufactured by companies like Cipla at excise free zones and that of the same drugs manufactured by other manufacturers at non-excise free zones. The list, which claimed an increase by about 100 per cent variation in certain cases, included commonly used antibiotics like ciprofloxacin, nimusulide, norfloxacin, fluconazol, amlodipine 5mg+aternolol 50mg, amlodipine+ atenolol, atenolol, losarten, atorvastatin, doxycycline, ofloxacin 200mg + ornidazole 500mg etc. CIPI had submitted the list to all the concerned authorities, including the PMO's office.

Meanwhile, the Chemicals Ministry has asked the Finance Ministry to reconsider its demands which were ignored in the Union Budget. It includes reduction of excise duty for pharmaceutical products from 16 per cent to 8 per cent, exclusion of all contract manufacturing units (loan licensees) located in excise exempt areas from tax benefits to put an end to the continuing woes of the SME drug companies in other parts of the country, increase in the exemption limit of turnover for small scale units from the present level to Rs 5 crore etc.