Par panel for blanket cap on profit margins of all medicines
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Par panel for blanket cap on profit margins of all medicines

Last Updated: Wednesday, August 04, 2010, 20:41
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New Delhi: Unhappy with profits being made by drug manufacturers at the cost of poor patients, a Parliamentary Standing Committee has demanded a blanket cap on profit margins of all medicines across the board.

The committee also recommended that the governments, both at the Centre and the states, procure generic drugs in bulk from manufacturers and dispense them directly to patients through health centres.

The capping of profit margins would do away with the need of monitoring prescriptions, identifying the manufacturers supplying low priced medicines and any need to prefer generic over branded products.

The Standing Committee on Health, headed by Amar Singh, asked the Department of Health and Family Welfare in coordination with the Department of Pharmaceuticals to convene a meeting of chief secretaries of state governments for formulating an effective "essential drug supply" policy.

The committee expressed shock that despite there being irrefutable evidence of a strong link between high prices of medicines and poverty, the number of drugs under price control regulation still remains at a "pathetic" 74.

Prescription of irrational and useless drugs by many of the doctors with ulterior motives is rampant. The committee is therefore, convinced that there is no other alternative but to include more essential and life-saving drugs under price regulation, it said.

On a suggestion before the committee of making doctors write all prescriptions in generic names only, the committee felt it has its flip side.

"In generic names only prescription policy, even if a doctor prescribes a medicine in the generic name, the chemist will be free to dispense any equivalent. Thus the power will shift from the doctor to the chemist".

Bureau Report

First Published: Wednesday, August 04, 2010, 20:41

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