The hearing on the revised drug policy in the Supreme Court has been deferred to December.
Since the proposed policy has not been notified, the Government has sought more time, a source familiar with the case told Business Line . The hearing will now come up on December 12. The apex court hearing is crucial as the drug policy discussions gained traction under its watch.
Consensus by deadline
Last week the revised version of the National Pharmaceutical Pricing Policy got approval from the Cabinet. It was a consensus that the Government cobbled together before the November 27 deadline, when the policy was to be placed before it.
Despite the reservations of pro-health groups, the Government decided to continue with the market-price based method of calculation. It decided to cap medicine prices at the “simple average” of drugs in a category with one per cent market-share. This, even as it brought all 348 medicines in the list of essential medicines under price control.
Meanwhile, pro-health advocacy groups are still campaigning for price caps on medicines to be based on the cost of production.
They are also concerned with the use of proprietary, private data as the basis for formulating the public health policy, besides the fact that combination drugs are not under price control.
Pricing issues
This, they fear, will provide an escape route for companies trying to circumvent price control. Industry representatives, though, are happy with the Government’s proposal to go with market-based pricing. However, they are unhappy with the simple average calculation that, they say, will erode industry profitability.