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From October The Cost For Generic Drugs Will Be Less
Jun 25, 2007

Taxes would be included in the maximum retail price (MRP) of generic drugs (that are unbranded) without any local tax inclusion says ministery for chemicals and fertilizers.

Union minister for chemicals and fertilizers said that taxes would be included in the maximum retail price (MRP) of generic drugs (that are unbranded) without any local tax inclusion. Hindi will be used as a medium of printing of name, along with price, expiry date and manufacturing date, which will came into effect from October 2.

The price of drugs is expected to be less, as the government's advice to limit the margins by up to 35 percent of production cost has been accepted by the manufactures.

Drugs are giving huge margins to generic drug manufacturers. A drug priced at Rs 1.20 in wholesale market had the retail price of more than Rs 35 in medical shops. The drug's cost will drop significantly as manufacturers will not be able to charge profits beyond 35%.

For now, the government, to counsel on essential drugs' price regulation has formed a 16-member committee. The recommendations by committee will be presented by 30 September to government. The proposal will be included in pharma policy, which will be presented before Cabinet in October's 1st week.

Industry is opposing the government's move of regulating essential drugs. The committee's focus will be on the elucidation of Supreme Court's behest on drug price control, methods to encourage R&D, public-private association for insurance of families living below poverty-line, competition's role in bringing prices down and concession in prices for acquirement by the government.

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