Lok Sabha Question No. 2933 (UNSTARRED), answered on 2016-03-15
Subject: Lower Price of Branded Medicines
Ministry: CHEMICALS AND FERTILIZERS
Asked by: MANSHANKAR NINAMA

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

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## LOK SABHA

UNSTARRED QUESTION NO. 2933

TO BE ANSWERED ON 15 th  MARCH,   2016

## Lower Price of Branded Medicines

## 2933. SHRI MANSHANKAR NINAMA:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) whether  efforts  are  being  made  to  bring  down  the  prices  of  branded  medicines  and  to promote the sale of generic medicines;
- (b) if so, the details thereof; and
- (c) if not, the reasons therefor?

## ANSWER

## MINISTER  OF  STATE  IN  THE  MINISTRY  OF  CHEMICALS  &  FERTILIZERS (SHRI HANSRAJ GANGARAM AHIR)

(a) to (c): All the medicines specified in the National List of Essential Medicines 2015 (NLEM) have been included in the First Schedule of Drugs (Price Control) Order, 2013 (DPCO, 2013) and brought under the purview of price control.

Both generic and branded medicines are treated alike for  fixation of price under  DPCO, 2013.  The  market  based  pricing  methodology  for  fixation  of  ceiling  prices  of  medicines,  as prescribed under DPCO, 2013, lays down that the average Price to Retailer (PTR) is calculated by  taking  into  account  PTRs  of  all  generic  and  branded  versions  of  medicines  having  market share  more  than  or  equal  to  one  percent  of  the  total  market  turnover  on  the  basis  of  moving annual turnover of that medicines; and 16% retailer margin is added to the average thus arrived at.

DPCO,  2013  provides  that  all  the  existing  manufacturers  of  scheduled  formulations (including branded or generic medicines) are required to revise the prices of such formulations downward  not  exceeding  the  ceiling  price  (plus  local  taxes  as  applicable)  fixed  by  the Government.  All  other  existing  manufacturers  selling  such  scheduled  formulations  at  a  price lower than the ceiling price (plus local taxes as applicable) so fixed by the Government shall maintain  their  existing  maximum  retail  price.  The  reduction  in  prices  of  530  scheduled formulations effected under DPCO, 2013 after price fixation of scheduled formulations by NPPA as compared to the highest price prevailing prior to the announcement of DPCO, 2013 is annexed as Annexure.

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## Annexure

Statement showing reduction in price of Scheduled Medicines with respect maximum price

| %reduction with respect to Maximum Price   |   No. of drugs |
|--------------------------------------------|----------------|
| 0<= 5%                                     |             80 |
| 5<=10%                                     |             50 |
| 10<=15%                                    |             57 |
| 15<=20%                                    |             43 |
| 20<=25%                                    |             65 |
| 25<=30%                                    |             49 |
| 30<=35%                                    |             26 |
| 35<=40%                                    |             34 |
| Above 40%                                  |            126 |
| Total                                      |            530 |