India caps prices of 36 more drugs to

improve access - government official

Various medicine pills in their original packaging are seen in Ljubljana February 1! "#1"$
BY ADITYA KALRA AND ZEBA SIDDIQUI-NEW DELHI/MUMBAI Fri Sep 19,
2014
%&euters' - India has capped the prices of 36 drugs!
including those used to treat infections and diabetes! in its latest move to make
essential medicines more affordable! a senior official of the country(s drug pricing
authority told &euters on Friday$
)he medicines join a list of 3* drugs deemed essential and that are therefore subject
to price caps! covering up to 3# percent of the total medication sold in a country +here
less than "# percent of people are covered by health insurance$
,)his is a straight-for+ard! most predictable! overdue action +hich has been done by
us!, the official at the -ational .harmaceutical .ricing /uthority %-../' said!
declining to be named because of the sensitivity of the matter$
0lobal and Indian drugmakers have been hit in India by +ide-ranging government-
imposed price reductions over the last year$ Industry officials say prices in the country
are already among the lo+est in the +orld! but the cost of drugs is over+helmingly
covered by patients themselves$
India in 1uly capped the prices of more than 1## drugs that are not part of the
essential medicines list$ )he pharmaceutical industry has challenged the move in
court$
Indian drugmakers! including 2ipla Ltd! &anba3y Laboratories Ltd! and 2adila
4ealthcare Ltd! are among the companies that +ill be affected by the latest decision!
research firm /I526 .harmasofttech /7/28 said$
2ipla said the implementation of the ne+ price rules has impacted its domestic
business and the company continues to take measures to mitigate its effect$ &anba3y
declined to comment! +hile 2adila did not respond to &euters re9uests for comment$
/n official at the 6epartment of .harmaceuticals! +hich controls the drug pricing
authority! confirmed the price cap move on Friday! but declined to give details$
2iproflo3acin! a common antibiotic that is sold by many companies including &anba3y
and 2ipla! is among the drugs +hose prices +ere capped by the latest order$ )he
research firm said the cap +ould shrink the drug(s market value by :1 percent$
;5&< )5 25;<
;ore big selling drugs for treatment of diseases including cancer! 4IV=/I68 and
cardiovascular could be brought under price cap to make them affordable in the
country! said &ahul 8harma! an analyst +ith ;umbai-based brokerage >arvy 8tock
?roking$
)he senior official at the pricing authority said the -../ +as dra+ing up a list of
mass-consumed! essential life-saving drugs +hich it thinks should be added to the
essential medicines list! but did not confirm treatments affected$
.eople directly involved in the process had told &euters in 1une that the government
+as likely to raise the number of drugs that are in the essential medicines list and
subject to price caps to improve affordability$
)he authority(s recommendations +ill be sent to health ministry by mid-5ctober! the
official said on Friday! adding one such proposal is to include &anitidine tablets!
+idely used to treat duodenal and gastric ulcers$
&anitidine is sold by companies including local unit of 0la3o8mith>line .lc and
India(s )orrent .harmaceuticals Ltd and &anba3y$ )he companies did not immediately
respond to re9uest for comment$
,5nly injections are covered in the list $$$ +e checked +hat is happening and sa+
people are taking tablets$ 7e are saying please cover tablets!, the official said$ ,-obody
is a control freak$ If it is essential! +e have a job to do$,
%7riting by 8umeet 2hatterjee@ <diting by &yan 7oo and 2lara Ferreira ;ar9ues'
.osted by )havam