MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS
(SHRI SRIKANT KUMAR JENA)
(a) to (e): A Statement is laid on the Table of the House.
A STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (E) OF THE LOK SABHA
STARRED Q.NO.213 (13 POSITION) FOR ANSWER ON 10.3.2011 REGARDING HIGHER
PRICES OF ANTI-CANCER DRUGS.
Anti cancer medicines are non scheduled drugs. In respect of drugs -
not covered under the Drugs (Prices Control) Order, 1995 (DPCO, 1995), i.e,
non-scheduled drugs, manufacturers fix the prices by themselves without seeking
the approval of Government / NPPA. Such prices are normally fixed depending on
various factors like the cost of bulk drugs used in the formulation, cost of
excipients, cost of R&D, cost of utilities / packing material, sales promotion
costs, trade margins, quality assurance cost, landed cost of imports etc. The
inclusion of the drugs under price control as per Para 22.7.2 of the Drug
Policy, 1994 was not based on the essentiality criteria but based on market
competition and monopoly situation.
As a part of price monitoring activity, NPPA regularly examines the
movement in prices of non-scheduled formulations. The monthly reports of IMS
Health and the information furnished by individual manufacturers are utilized
for the purpose of monitoring prices of non-scheduled formulations. Wherever
a price increases beyond 10% per annum is noticed, subject to prescribed
conditions, the manufacturer is asked to bring down the price voluntarily
failing which action is initiated under paragraph 10(b) of the DPCO, 1995
for fixing the price of the formulation in public interest. This is an
ongoing process.
The Pharmaceutical Policy as amended from time to time also envisages
making available quality medicines at reasonable prices to the patients.