As the government is moving to impose a price ceiling on essential medicines, the pharmaceutical industry is looking for an exemption from ceiling price for all low-priced formulations up to Rs 5 per unit, The Economic Times (ET) reports.
Citing people aware of the developments, the newspaper reported that the industry lobby met government officials to request an exemption from the implementation of trade margin rationalisation (TMR) for formulations that cost less than Rs 10 per unit as well. The industry and the government are on the same page on TMR, however, the industry wants it to be implemented in a phased manner.
The Indian Pharmaceutical Alliance (IPA) represents the country's biggest drug manufacturing companies. IPA, along with other lobby groups in their suggestions to the government asked for exemption from price ceiling regulations for low-priced formulations, the report said.
With support from the Indian Drug Manufacturers' Association and the Organisation of Pharmaceutical Producers of India, the alliance was joined also joined by Karnataka Drugs & Pharmaceutical Manufacturers, among other bodies.
The National Pharmaceutical Pricing Authority (NPPA) is empowered to impose price ceilings on essential medicines under Schedule I of the Drugs (Price Control) order.
The government resumed the discussions regarding TMR on drugs and medical devices with industry stakeholders on May 16, ET reported.
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To facilitate meaningful dialogue, the Department of Pharmaceuticals and the NPPA organised a meeting and invited members of Pharma associations and medical device manufacturers to understand their concerns and seek their suggestions.