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It is a matter of fact that the government decontrolled prices of 108 drugs last week. In July 2014, the National Pharmaceutical Pricing Authority (NPPA), the country's nodal drug price determining body, came out with an order capping the price of 108 drugs not included in the National List of Essential Medicines (NLEM), which lists 652 formulations. This had drawn the ire of domestic and multinational manufacturers who even went to court against the order. After last week's order, the NPPA cannot, in future, determine ceiling prices of non-scheduled drugs to cure cancer, blood pressure/heart, antibiotic, cholesterol, eye diseases, diabetes, rabies and TB.

The manufacturers had contested the government's earlier order of control, and the case remains in Delhi and Bombay high courts, filed by the Organisation of Pharmaceutical Producers of India. The industry has taken position that there must be sufficient profit margins for it and that price control is justifiable only "under extraordinary circumstances", like an emergency, epidemic or where a monopoly situation exists.

Under the controlled regime, Glevec (anti-cancer) and Plavix (medicine for blood pressure and heart ailments) were sold at heavy concessional prices. Pharma companies admit that Glevec was sold at 93% subsidy under the controlled regime.

Now, the government has withdrawn powers of NPPA to fix prices of these 108 drugs. What we had put out was the original price of drugs and the current controlled prices. We have amply reported that government has kept these powers with it. By decontrolling prices and taking away powers of the NPPA, it is expected that these drugs will be restored to their original prices. The original price of Glevec is Rs1,08,000. That is why it is priced at 93% less currently.

The government's order has come only last week. It is just a matter of time when market will determine the price of these medicines. It is difficult to imagine that pharmaceutical companies would continue to sell these medicines at the old 'subsidised' rates.

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