ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Have Drug Prices Fallen?

A close look at the prices of drugs over the last four years shows that there has been a consistent overall rise in drug prices. Drugs which need to be used over a long period, such as those used for tuberculosis and diabetes, are especially affected.

Prices of Prescription Drugs

A review of the prices of a category of prescription drugs, cardiovascular drugs which are needed life long, shows how irrational are the patterns of price rise.

Continuing Rise in Drug Prices

It is puzzling that major drug companies and their associations should be claiming only a modest overall rise in drug prices over the past year, when a productwise analysis of the prices widely used brand leaders show that there has been a sharp rise in prices of drugs.

Price Control on Drugs Is Essential

and thereafter it should be stepped up each year in a phased manner to reduce the burden of subsidy to agriculture sub- stantially. The committee had also emphasised the importance of discontinuing the horsepower-based tariff and had urged that the board should install meters on the premises of all agricultural consumers within three years at the latest.

High Cost, Low Efficiency Medicines

LATELY there has been an increasing trend of introducing new drugs at exorbitant costs. These drugs are basically molecular changes of older drugs. It is said that the Drug Controller of India (DCI) takes due care in introduction of new drugs. But from the following examples, one starts doubting the DCI intentions.

New Drugs at What Cost

Red Chip companies is enormous because they are backed by the Beijing government and various state and municipal governments. To boost their allurements by their sponsors they are fequently given what are labelled "asset injections', that is they are allocated by their sponsors capital funds to boost the attractiveness of their balance sheets.

New Products, New Prices

Wishvas Rane In the last year, there has been a sharp increase in the number of new brands and packs of old products priced much higher. The absence of a sharp rise in prices of old products does not mean that the consumer is spending any less on drugs.

Analysis of Drug Prices, 1980 to 1995

Since the drug policy of 1986, many changes have been introduced liberalising the environment for drug manufacturing and marketing. These changes have apparently come about as a response to the drug industry's plea that controls in India were too stringent and that without controls prices would stabilise and not rise. Yet, a categorywise analysis of prices of drugs over a period of 15 years shows that there is a general rising trend in prices, especially of essential and life-saving drugs.

Drug Prices Sharp Rise after Decontrol

after Decontrol Wishvas Rane The sharp rise in drug prices has been facilitated by the new policy adopted by the government on drug pricing. UNDER the 1995 DPCO, drug units are entitled tor 18 per cent post-tax return on net worth if bulk drugs are manufactured from the basic stages, as against 16 per cent in the 1987 DPCO. This rise the drug manufacturers can claim justifiably. The bulk drug units making 6-APA and 7-ADCA intermediates for synthetic penicillin will now have to source penicillin G from local manufacturers to the extent of 70 per cent of their requirement. This government policy shows a clear shilt in favour of domestic penicillin G manufacturers. An inevitable outcome of this is likely to be a price increase of semisynthetic penicillins like ampicillin, amoxycillin and cephalexin.

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