The Parliamentary Standing Committee attached to the Chemicals Ministry has asked the Department of Pharmaceuticals (DoP) to identify the pharmaceutical companies which are circumventing price control mechanism by changing the composition and strength of their formulations. The panel also asked the DoP to take up the matter with the ministry of health and family welfare for further action.

In its recent recommendation, the Committee once again took up the issue of pharma companies dodging the provisions of the price control mechanism and asked the Department to follow up the matter.

“The Committee also noted that the pharma companies frequently change the composition/strength of their formulations to circumvent the provisions of DPCO. In order to escape the provisions of the DPCO, pharma companies are also using the via-media of dietary supplements under the Prevention of Food Adulteration Act, 1954 and flooding the retail market by medicines of dietary supplements. The Committee, therefore, recommended that the Department should identify such pharma companies and take up the issue strongly with the Ministry of Health and Family Welfare,” the panel said.

In its action taken reply on the earlier recommendation, the Department said the issue was taken up already with the Department of Health and a reminder was sent again in April this year. However, the committee asked the Department again to “vigorously pursue the issue with the Ministry of Health to its logical conclusion”.

As per the old DPCO, 1995, the NPPA had the power to revise and fix the price of 74 bulk drugs. As per the new DPCO, 2013, the number of scheduled drugs has gone up to 348 drugs listed in the National List of Essential Medicines and their formulations, coming over 600.

In its earlier recommendations, the Parliamentary panel had pointed out this practice of companies trying to circumvent provisions of the DPCO and how the companies flooding the market with dietary supplements.

“The Committee also desire that NPPA should not hesitate to invoke the relevant provisions to curb such alleged malpractices by the drug companies. Thus, the circumventing of the price control mechanism by some manufacturers by shifting schedule drugs to the category of food and nutrition supplement manufacture under Prevention of Food Adulteration Act 1954 should also be monitored by the NPPA. In this regard, NPPA cannot shirk away from its responsibility and leave the matter at the behest of the Ministry of Health and Family Welfare,” the panel said.