SC tells govt to relook at drug pricing policy

Mangalore Today News Network

New Delhi, July 16, 2015, dhns: The Supreme Court on Wednesday asked the Centre to re-examine its drug pricing policy, which “seems unreasonable and irrational”, while noting that there was an impression that the government was not pro-poor and acted under pressure from a powerful lobby.

A three-judge bench presided over by Justice T S Thakur suggested the ministries of health and chemical and fertilisers to re-examine the National Pharmaceutical Policy (NPP), 2012 and Drug Pricing Control Order (DPCO) of 2013 in terms of suggestions made by the NGO All India Drug Action Network.

Senior advocate Colin Gonsalves, appearing for the petitioner, contended that the DPCO formula — bringing 348 drugs under national list of essential medicines — fails to serve the cause of the poor as it does not include those medicines which helped in dealing with diseases prevalent in the country. He also submitted that the price of a generic drug available for Rs 0.60 in market was fixed by the government at as high as Rs 3.60.

He claimed that barring a few states like Tamil Nadu, Kerala and Rajasthan, such drugs were procured by different state governments even on higher prices. “What is the use of such a policy if it leads to such kind of absurd results,” he asked.

“The Centre’s drug pricing policy seems to be unreasonable and irrational for fixing prices at the very high level,” Justice Thakur said.

The bench, also comprising Justices V Gopala Gowda and R Banumathi, told the government’s counsel, “What we are suggesting is, he (NGO’s counsel) will give a representation, you have a look at it. The impression is that there is a powerful lobby and you (government) are not pro-poor and acting under pressure from pharma companies.”

The court gave six weeks to the NGO to give a representation and six months to the
government to reconsider its policy and pass appropriate order.

Passing a detailed order, the bench recorded submission of Gonsalves that the previous policy of the government of fixing a drug price by factoring in cost and 100 per cent profit had been abandoned, causing prejudice to the less fortunate sections of the society.

The court also asked the government to consider the NGO’s plea how and why the medicines used for HIV, TB, maternal health etc have been excluded from the list of 348 essential drugs.

Additional Solicitor General Pinky Anand and senior advocate Arun Kumar Sanghi, appearing for the government, submitted that the NPP 2012 and DPCO 2013 have been formulated with the objective of making certain drugs available to the common man and leaving enough scope for pharma companies to grow.They, however, agreed that the authorities can have a relook at the policy and can take corrective measures after taking experts’ opinion.