labels: industry - general, pharmaceuticals
Government reduces dealer margins on 886 medicines news
31 October 2006

Mumbai: The government has reduced the prices of 886 medicines by paring both wholesale and retail margins.
According to the new guidelines, wholesale dealers will get 15 per cent margin while retailers will get 35 per cent over the cost of manufacturing of generic medicines, minister of chemicals and fertilisers Ram Vilas Paswan said.

The government order covers anti-diabetic drugs, antibiotics, cough syrups, painkillers as well as those used during surgical operations for the cure of infectious diseases and for the treatment of hypertension.

Paswan said the factoring of all local taxes in the MRP of medicines has already taken into effect from 2 October, adding, "medicines manufactured on or after October 2 may take four-six weeks to reach the retail counters."

The current list of 886 medicines is the first in the series and the government would extend margin rules to more such medicines, he said .

The 'national pharmaceutical pricing authority' would continue to fix the price of formulations without local taxes and manufacturers would have to add the element of local taxes to arrive at the MRP, Paswan said.

He said the government proposes to enact a Drugs (Prices Regulation and Control) Act to have effective control on prices, production, distribution and supply of medicines.

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Government reduces dealer margins on 886 medicines