Drugs likely to get cheaper

1-4 September, 2006 Pragati Maidan, New Delhi, India

Drugs likely to get cheaper
10- 70% fall in prices expected

Prices of costly “essential” medicines and drugs are set to fall by 30% to 70% and that of low end brands may fall by 10% to 30%, once the new drug policy is in force, according to the Cabinet note on the new pharma policy.

The price fall will be applicable to around 8% of all drugs sold in the country now. These include painkillers like diclofenac, ibuprofen, cardio-vascular drugs like isosorbide dinitrate, anti-hypertensives like losartan and amlodipine maleate, antibiotics like ceftriaxone and costly cancer drugs like gemcitabine and paclitaxel. The list covers the entire therapeutic spectrum.

The policy, ready for Cabinet approval, extends price control, currently restricted to 74 key ingredients and formulations derived from them, to 354 drugs on the essential list. The prices of medicines under price control, accounting for a quarter of the market, would be frozen at their current levels for a year after which drug makers would be allowed to charge a higher margin of 150% of cost of production, from the present level of 100%.

Date: 15-Jun-2006

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