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A new drug policy aiming at reducing the price controls is likely to
be finalized by October, 2001.
Paving the way for finalization of the draft new drug policy document,
National Pharmaceutical Pricing Authority (NPPA) is expected to submit
its new recommendations by end of September, 2001.
"We hope to receive the new data from NIPER (National Institute
of Pharmaceutical Education and Research) in two weeks time and finalize
our report by next month end," NPPA chairman B S Baswan said.
Chemicals and fertilizer ministry had earlier directed the NIPER to submit
latest data about the drugs considering the cut off date as March 31,
2001 instead of March 31, 1999 following health ministry's objection on
it.
According to sources health ministry had raised objections to the draft
of the new policy saying it was based on old data and had asked the fertilizer
and chemicals ministry to incorporate necessary changes in line with latest
data.
Health ministry has suggested that criterion on the turnover data be
applicable to an updated list of companies up to March 2001. Baswan said
that after the data is received from NIPER, NPPA would collate various
details and recast the draft policy document.
According to sources the new drug policy is likely to reduce the span
of control from existing level of 74 drugs to 35 drugs.
Under the new policy, bulk drugs with an annual turnover of Rs five crore
per annum would come under the controlled price regime, sources said adding
that the turnover limit for company manufacturing the drug would be at
Rs 20 crore a year.
As per the existing drug policy, the criterion of a drug being under
price control is minimum annual turnover of Rs one crore for a bulk drug
and Rs four crore annual turnover for the company.
Currently, monopoly situation is created if a single formulation drug
has more than 50 per cent market share.
Earlier union minister of fertilizer and chemicals Sukhdev Singh Dhindsa
had said that the new policy will take into account all initiative required
for boosting research and development in the sector apart from reducing
the span for control from drugs.
He said the policy is likely to incorporate the recommendations of the
task force on knowledge-based industries under the chairmanship of union
minister for human resource development and science and technology, Murli
Manohar Joshi. (Source: Times of India 27th August 2001)
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