Your medical bills may come down in 6 months
Govt plans to prune profit margins of chemists, wholesalers
NEW DELHI: Drug prices may see a sharp drop with the government planning to prune the profit margins of chemists and wholesalers, a move that will especially prove to be beneficial to those battling cancer, heart, kidney and liver illnesses. The retail price of some of the drugs is 11 times (1000%) higher than their production cost, but the government wants to lower drug prices.
“We plan to cap traders’ margin at around 100% across drug categories — generic, branded, scheduled and non-scheduled,” minister of state for chemicals and fertilisers Hansraj Gangaram Ahir told HT on Tuesday. “Chemists and distributors are currently charging exorbitant margins which are as high as 1000% and above… Controlling and squeezing the margins would bring down the prices…”
A notification could be sent out in the next six months, the minister said.
Pharma firms do not offer big margins on over- the-counter drugs such as Crocin and Disprin due to competition.
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