Pharma industry not happy with new drug price controls

The union health ministry is working to bring all healthcare-related departments under one umbrella over the next five years, according to a senior official.

In the short term, the ministry is seeking to create policies to make healthcare more accessible, Rajendra Pratap Gupta, advisor on public policy, economy, rural development, healthcare, retail, innovation, said on the sidelines of a healthcare access summit organised by the Organisation of Pharmaceutical Producers of India in Mumbai.

"One of the biggest lacunae is that the health industry is spread across different departments, and the best way to bring synergy is conversion of related departments under one. I think the health ministry is also thinking the same," he said.

Gupta said this step cannot be implemented immediately, but it will happen over a five-year term. He also said that a health policy is also on the anvil.

Gupta, who has authored the manifesto of the new government, said the first step is to have a health policy in place. The other requirement is to bring down out-of-pocket spending, increase healthcare access, increase the quality of care, and the use of new technology.

The other major thrust would be on upgrading the government hospitals and provision of latest technology and diagnostics. He also said that the government would set up the National e-Health Authority but that depends on which phase it gets rolled out.

On the recent decision of National Pharmaceutical Pricing Authority (NPPA) to bring more drugs under price control, Gupta said, "It is very clear that the patient interest will be above everyone and whatever it takes to be there will be there."

Shailesh Ayyangar, drugmaker Sanofi's  managing director, India, and vice president, South Asia, global operations, who is president of the Organisation of Pharmaceutical Producers of India that represents the interest of multinational pharma firms, said, "When the price regulator decided on bringing a list of essential medicines under price control in 2013, it organised a discussion with all the industry stakeholders. If there could be a discussion then, why not now? The issue is it was done unilaterally, without having any discussion with the industry."

While the case is now sub judice after some industry stakeholders including Indian Pharmaceutical Association, the professional association of pharmacists, and OPPI moved the courts against the NPPA's recent decision to bring 108 more formulations under price control, manufacturing of these products may have to stop unless there is the court decision.

Ranjit Shahani, vice chairman and managing director of Novartis, said, "I think companies will stop manufacturing; otherwise stocks would be there and you have to re-label them. Which means there is a gap and there is uncertainty over the court decision, uncertainty over what the government might do and so there's going to be certain disruptions some way or the other."

While Shahani said that till a court decision or a consensus is reached, the medicines will be sold at the old price.

Aijaz Tobaccowala, managing director, Pfizer, said, "As far as I know, till there is a change, it's on the go. I think we don't have a choice."