Govt expands panel to reform drug, device price mechanism
The order has invited officials of at least seven industry associations to the committee
The department of pharmaceuticals, under the Union ministry of chemicals and fertilizers, has decided to expand the five-member committee set up to oversee efforts to reform drug and medical device pricing by inducting more members from industry bodies, according to an order issued by it.
As per the 22 April order seen by Mint, it has invited officials/representatives of at least seven industry associations to the committee that has been tasked with striking a balance between pricing and availability of essential medicines, while incentivizing the industry to foster growth and exports.
The move comes after many associations asked why only one pharma body had been included in the core committee.
The new inductees include the director general of the Organisation of Pharmaceutical Producers of India, MD of US-India Strategic Partnership Forum, DG of CII, director of US-India Business Council, secretary general of Ficci, and forum coordinator of Association of Indian Medical Device Industry, among others.
In addition to suggesting reforms in the pricing framework for drugs and medical devices, the panel will work on formulating reforms within the National Pharmaceutical Pricing Authority (NPPA), establishing a framework for price moderation for medical devices, providing incentives to reduce imports, and developing a price moderation framework for emerging and precision therapies to ensure timely access for patients in need.
The committee will also supervise the drafting of a new Drugs and Medical Devices (Control) Order, taking into account these objectives. The original panel comprises three key members: secretary, department of pharmaceuticals, chairman, NPPA, and senior economic adviser to the department of Pharmaceuticals. It also has two representatives from the pharma industry: the secretary of the Indian Pharmaceutical Alliance and chief executive of the Indian Drugs Manufacturers’ Association.
Currently, the NPPA follows the regulations outlined in the Drugs (Prices Control) Order, 2013 to ascertain the prices of medications and medical equipment categorized as drugs.
The move comes after many associations asked why only one pharma body had been included in the core committee