|
 |
| 1-4
September, 2006 Pragati Maidan, New Delhi, India |
 |
|
|
Pharma Companies Rule Out Price Hike
Close on the heels of the Union minister for chemicals and fertiliser Ram Vilas Paswan’s recent move to increase the span of drug price control to more than 300 drugs, the majority of the Indian pharma companies are not likely to go for a price increase before March 2005. Indian Drug Manufacturer’s Association (IDMA) has already mooted the idea of not increasing the price of drugs with its 600 and odd members recently. Indian Pharmaceutical Alliance (IPA) has also agreed to freeze drug prices at current levels through the current financial year ending March 31, 2005, despite inflationary pressures.
IDMA intends to meet the minister and discuss the issues in details. The idea of not increasing the price had been mooted from the price committee meeting of IDMA before IPA announced it. The members will however prefer that prices should be decided by the competition. IDMA members comprise large, medium and small companies from all over India, manufacturing bulk drugs and formulations. IDMA plays a vital role in the growth and development of the industry, by taking up with the government major issues such as price control, patents and trade marks laws, R&D and exports.
The assurance to keep prices down was given by the IPA members during a meeting with Paswan. The IPA is an association of 11 leading research-oriented companies with 30 percent domestic market share.
It was not any easy decision for IPA despite the fact that all the input costs of pharmaceutical industry are based on fine-chemicals. The decision was taken at such a short notice that it was difficult for IPA to make a projection of the impact, especially when the oil prices are so volatile. This decision will definitely heave a sigh of relief for the consumers.
Date: 28-Oct-2004
Back
|
|
 |
|
|
|
 |
