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‘Market
surveillance than pricing to be NPPA’s prime responsibility’
 B
S Baswan, chairman of the National Pharmaceutical Pricing Authority
and Secretary to the Government of India is a young and charismatic
bureaucrat who can sense the pangs of a fledgling industry while
addressing the concerns of the general populace. In the days to
come that has more challenges in store for the industry than ever,
the prime responsibility of the watchdog organisation will be more
of monitoring than price fixing, for which the authority will be
equipped with the latest technological tools, says the chairman
in an exclusive interview with Gireesh Chandra Prasad G I
of Express Pharma Pulse. Excerpts:
While trying to support the industry, the government has to take
into consideration the concerns of the not-so-well-off section of
the society as well. How can a balance between the two be achieved?
Objectives are the ends we strive to achieve and a perfect and ideal
objective is rarely achieved. There is a deep-rooted contradiction
inherent in the objective in point. Sustainable industry is a sine
qua non for an efficient healthcare delivery system which can provide
all essential drugs at reasonable cost. NPPA is only one enabling
instrument of the Government towards this goal. In the preceding
decade, at a time when NPPA was not anywhere in the picture, market
forces decided the price which remained well at affordable levels.
Again easing of price controls did not lead to spiralling of prices.
What is needed at the moment is to reduce the span of price control
and substituting it with a system of more efficient monitoring of
drug prices. If there is an anomaly in prices, if any collusion
among manufacturers is noticed, NPPA would then step in and demand
explanation from the industry. If the situation so warrants, we
would bring the drug under price controls. However, price control
as a weapon is a Brahmastra. It has to be used very carefully.
Does this imply that NPPA seeks to function in friendly cooperation
and consequently reducing room for confrontation between the industry
and the pricing body?
Very much so. However, though the span of price control would be
reduced, our monitoring system would be strengthened substantially
with the latest tools such as IT infrastructure in order to a keep
a very close vigil on the market, which will help implement NPPA’s
directives more effectively. We will make use of tailor-made software
for this purpose. Specialised agencies such as the ORG Marg will
also be involved in this mechanism for monitoring the market. We
are now working on the finer details of this mechanism. Recently
we had a meeting with the industry bodies such the IDMA and OPPI
in which very useful suggestions came up. The industry personnel
shared their views and concerns with us. Some of their notions that
were not well founded were cleared. Regarding drug pricing also,
they expressed their views.
How effective have been NPPA’s efforts to recover the overcharged
amounts from drug companies?
We
are not very much satisfied with the result of efforts towards revenue
recovery. The Expert Committee looking into the procedure and functioning
of the watchdog body is considering to recommend conferring more
powers of recovery to NPPA including the power to attach the bank
accounts of defaulting drug companies. But this provision will be
used only in rare cases where the amount to be recovered is huge
and this will be done with the approval of the Government. The Committee
would collect the opinion of all the stakeholders including NPPA
before making its recommendations. As I said, we gave a patient
hearing to the industry bodies as well. A number of overcharging
cases against various drug manufacturers are pending in various
High Courts across the country.
What is the present status of the case of overcharging against
Bulk Drug Manufacturer’s Association (BDMA)?
BDMA
had filed a writ petition in 1997 against the inclusion of eight
bulk drugs in the first schedule of DPCO. Later, the Delhi High
Court passed an interim order to the effect that no punitive action
will be taken against the members of the petitioner association
based on the inclusion of the said drugs under DPCO. However, thanks
to the efforts of NPPA, the honourable High Court vacated this stay.
NPPA also obtained a favourable decision from the Supreme Court
on a Special Leave Petition filed by BDMA to vacate the interim
order. The Supreme Court had directed the Delhi High Court to hear
the main subject matter of the writ petition and decide the case
on merit.
What is the status of the downward revision of Salbutamol, Ciprofloxacin,
Cefadroxil, Cloxacillin and Theophylline heard in Delhi High Court?
Prices
of bulk drugs Cefadroxil and Cloxacillin were revised downwards
by NPPA. These drugs are also covered by the BDMA case which is
being heard in the Delhi High Court.
What about the stay on the notification regarding the pricing
of Ibuprofen-Paracetamol combination pending in the Hyderabad High
Court?
Two
writ petitions, challenging the price notification in respect of
Ibuprofen and Paracetamol were filed in the Hyderabad High Court
in 1999. In both the cases, interim stay was given by the High Court.
However, due to the efforts of NPPA, the High Court in its order
in July 2000 has deposed of one of them in favour of the Government.
We are taking steps to depose of the other writ petition also.
Is there a need to regulate the price of branded Ayurvedic products
that flood the market?
DPCO
excludes Ayurveda and Homoeopathic drugs. Life saving drugs are
not part of the pharmacopoeia of these disciplines. It is a matter
under the jurisdiction of the Department of Indian Systems of Medicine.
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