Industry representatives from pharmaceutical companies are urging the Centre to rationalise the pricing of various medicines on the National List of Essential Medicines (NLEM), given the rising cost of active pharmaceutical ingredients (APIs). The discussions took place at a meeting between Indian Pharma 2022 and officials from the Ministry of Chemistry and Fertilizers.

Prices of APIs (active ingredients contained in medicines) have soared due to Russia’s war in Ukraine. In contrast, the prices of medicines under NLEM remain the same, which puts a burden on pharmaceutical companies, reports media.

NLEM lists more than 800 medicines in India, including essential medicines necessary for treating bacterial infections, anti-anaemia, and vitamins. The National Pharmaceutical Pricing Authority (NPPA) has allowed price increases for scheduled medicines subject to NLEM price controls from April.

However, the Centre has ruled out price increases for essential medicines, saying WPI-related medicines could automatically rise or fall based on WPI price. “The price of these drugs is only a few rupees, so a 10 per cent increase in WPI may lead to a price increase of a few paise,” Union Minister Mansukh Mandaviya said.

According to media reports familiar with the matter, the government is likely to set up a committee in the coming days to investigate the claims of industry representatives from pharmaceutical companies. “The government has had an exception in the past, and we told officials to think about the same for us this time,” said a pharma chief executive who asked not to be named.

He added that profitability should not be the norm for pharmaceutical companies, although government officials have indicated that a committee may be formed. According to a pharmaceutical company representative, expedited approval of non-coronavirus drugs was also discussed at a meeting with officials from the chemical and pharmaceutical departments.

“We informed officials that some red tape was involved, and approval from several ministries was required,” said a pharmaceutical executive. He further said that officials from the ministry emphasised the formation of a sub-committee to fast-track the approval process for several ministries.

• Vedanta Outlook for the Week (May 06, 2024 – May 10, 2024)
• Tata Steel Outlook for the Week (May 06, 2024 – May 10, 2024)
• PFC Outlook for the Week (May 06, 2024 – May 10, 2024)
• Piramal Enterprises Outlook for the Week (May 06, 2024 – May 10, 2024)
• MANAPPURAM Outlook for the Week (May 06, 2024 – May 10, 2024)

Representatives of pharmaceutical companies urged government officials to ease the compliance burden of pharmaceutical compliance, officials at the Department of Chemistry and Pharmaceuticals reassured.