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LATEST NEWS UPDATES | Drug pricing policy irrational, re-examine it, Supreme Court tells Centre

Drug pricing policy irrational, re-examine it, Supreme Court tells Centre

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published Published on Jul 16, 2015   modified Modified on Jul 16, 2015
-The Times of India

NEW DELHI: The Supreme Court on Wednesday asked the Centre to re-examine its drug pricing policy for essential medicines, calling it "unreasonable and irrational" as the price of some medicines is at around 4000% higher than what has been fixed by some state governments.

A bench headed by Justice TS Thakur asked the ministry of chemicals and fertilizers to analyze and give explanation why the controlled price of essential medicines has been fixed at a high level depriving the poor from getting life-saving drugs at reasonable rates.

"The formula does not seem reasonable and rational. Your pricing is 4000% more than what is being provided by Tamil Nadu and Kerala governments. What kind of control is it? Why are you not taking cognizance of it?" the bench asked the government.

Additional solicitor general Pinky Anand assured the court that the government would look into the issue and take corrective measures, if required.

The bench directed All India Drug Action Network, an NGO which challenged the Drug Price Control Order (DPCO), to make a representation to the government. It said that the ministry would pass a reasoned order within six months.

At present, the government caps prices of a total of 348 essential medicines based on the simple average of all medicines in a particular therapeutic segment with sales of more than 1 per cent.

The government had notified DPCO, 2013, which covers 680 formulations, with effect from May 15, 2014, replacing the 1995 order that regulated prices of only 74 bulk drugs.

Challenging the DPCO, the petitioner contended that under the new policy the margin of profit for drug manufacturers and dealers had become 10-1300 per cent. It also said the National List of Essential Drugs consists of only 348 drugs and left out many essential medicines from price control.


The Times of India, 16 July, 2015, http://timesofindia.indiatimes.com/india/Drug-pricing-policy-irrational-re-examine-it-Supreme-Court-tells-Centre/articleshow/48092107.cms


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