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The Committee formed for Reforms in the Pricing Framework for drugs should be chaired by an independent expert, opines Pradeep S Mehta, secretary general, CUTS International. He was reacting to a report on the formation of a high-level committee to revisit and potentially overhaul the existing pricing mechanism.
Established in 1983, CUTS has emerged as a prominent think-tank dedicated to addressing economic and public policy issues. Though its research initiatives and advocacy efforts, CUTS continues to play a pivotal role in shaping policy discourse and driving positive changes at both regional and international levels.
Mehta was apprehensive of the fact that the said committee will comprise of officials from the Department of Pharmaceuticals (DoP), the National Pharmaceutical Pricing Authority (NPPA) and industry representatives.
“How can a committee to review and overhaul something so important can be manned by only the nodal department, the authority itself and the related industry,” asks Mehta.
According to him, in order to avoid its recommendations being influenced by the vested interests, the Committee must also include representatives from consumer organisations, public health advocacy groups and academic experts as its members. “In particular, it should not be chaired by secretary, DoP, but by some eminent academic expert”, Mehta adds.
There have been media reports that the Central government is considering to overhaul the present drug pricing mechanism for which a high-level committee has been formed. Reportedly, the said committee comprises senior officials from the DoP, the NPPA and industry representatives.
The Centre on March 12, 2024 formed a high-level panel to introduce reforms in the pricing framework for drugs and medical devices.
The committee will be chaired by the secretary DoP and will have the chairman of the NPPA and the economic adviser to the DoP among its core members.
Representatives from two major pharmaceutical organisations — Indian Pharmaceutical Alliance (IP Alliance), a network of research-based Indian drugmakers, and Indian Drug Manufacturers’ Association (IDMA), a group of generic drugmakers — have also been included in the panel as special invitees.
A circular on the constitution of the committee said the panel needs to submit its report within the next three months.
The terms of reference for the panel include institutional reforms within the NPPA and how to balance price and availability of essential medicines, while providing incentives to the industry to sustain growth and exports.
The panel will also suggest a price moderation framework for medical devices. It will also provide incentives to the industry to sustain growth and minimise imports.
The pricing mechanism for drugs was earlier revised in 2013, when the Drugs Prices Control Order (DPCO 2013) was introduced.
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