Source: Business Standard, Aug 17, 2017
New Delhi: In an attempt to make drugs affordable to all, the government has planned a fresh pharmaceutical policy. The policy draft says that the government will fix trade margins for drugs as well. At present, the National Pharmaceutical Pricing Authority (NPPA) is in the process of fixing trade margins for a number of medical devices like orthopedic knee implants and cardiac stents.
According to the draft, which Business Standard reviewed, “The issue of unreasonable trade margins and bonus offers by various stockists, distributors and retailers has been adversely affecting both the industry as well as consumer interest. After detailed stakeholder consultations, the level of trade margins will be prescribed to create a level playing field for the industry and to bring down the prices.” It also states that institutions that procure directly from manufacturers will also be subject to this regulation.