Indian Pharma opposes new drug policy, saying it will encourage fakes and raise prices

India's three major drug manufacturers' organizations - the Organization of Pharmaceutical Producers of India, Indian Pharmaceutical Alliance and Indian Drug Manufacturers Association - have strongly opposed the country's new draft National Pharmaceutical Policy 2006, saying it will herald an era of increased counterfeit drugs and higher prices which, in turn, will hit R&D in the industry.

The policy, now being circulated among federal ministries for comments before it is presented to Parliament for approval, proposes to bring 354 essential drugs under price control, in addition to retaining the 74 agents identified as essential which are already controlled.

Ranjit Shahani, chairman of the OPPI, said the policy goes against the progressive trend in pharmaceutical pricing that was followed by successive governments over the years whereby the number of drugs under price control was brought down from 347 to 143 and finally to 74. In fact, the new Pharmaceutical Policy in February 2002, had suggested a further reduction in the number of drugs under price control from 74 to about 30.