Pharma sector witnesses price hike of 15.62%

Even as the domestic pharmaceutical industry continues to push the government for greater freedom in pricing of medicines, the last six year...

Even as the domestic pharmaceutical industry continues to push the government for greater freedom in pricing of medicines, the last six years have seen an average price rise in medicines of 15.62 per cent per annum.

Over a period of six years — between 1995-96 to 2000-01— prices of medicines have gone up by a steep 78.12 per cent. The average annual increase in wholesale price index (WPI) for drugs and medicines over the same period has been 15.62 per cent against WPI rise of 5.61 per cent in case of all commodities.

As many as 75 per cent of the medicines (1919 medicines out of 2557 scheduled and non-scheduled medicines) having an annual sales of over Rs 1 crore have seen an increase in prices, according to figures compiled by ministry of chemicals and fertilisers. The rise has been over 100 per cent in case of 38 medicines.

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Some of the popular brands of medicines like Calmpose, Corex, Benadryl, Protinex, Fortum, Septum, Ditide and Trivedon have witnessed a steep rise in their prices over the past 5-6 years. According to industry sources, price of calmpose, for instance, has gone up from around Rs 2 for a strip of 10 to around Rs 7.5-8 for a strip of 10. Similarly, prices of Corex and benedryl rose from around Rs 25-26 to around Rs 36-37 over the same period.

Apart from uncertainty in terms of policies and guidelines, there has not been proper monitoring by the NPPA, the industry feels.

The industry also feels that in a situation where we do not have clear policies and no proper monitoring, these things are bound to happen. “We have one policy coming after another without proper implementation of the provisions of previous policies,” says an industry source.