Simplified forms for CC, PC on the anvil, data to be coded

Narendran Nair C N, Mumbai

Pharmaceutical industry associations will soon ask their members to share data regarding conversion cost (CC), packaging costs (PC) and process loss (PL) with the Union Government to enable calculation of the norms in this regard.

Following the industry’s submission, the government has entrusted the exercise of analysing the data for arriving at norms of CC, PC and PL to the cost account branch of the department of expenditure under the Union Finance Ministry.

According to a source, about a month ago, the NPPA had advised the Finance Ministry to collect CC, PC and PL, but as the forms were elaborate, companies were reluctant to share the data.

The industry associations urged J K Puri Additional Chief Advisor, Cost Account, and K C Kohli, director, Cost Account, to simplify the forms so that only ‘‘relevant data’’ is asked for. According to a source, at their meeting on December 9, Kohli had orally agreed to grant confidentiality to the data thus provided to their department by the corporates.

The associations are now working on a simpler format which will be submitted to the department for approval.

OPPI Director General Dr Ajit V Dangi said there would be no problems in complying with the requirement thereafter.

So far, the industry had claimed that the cost audit reports would provide the required information to the government to arrive at the norms. The associations had requested the National Pharmaceutical Pricing Authority to grant an increase in the packing material norms for innovative and specialised packing material used especially for packaging pharmaceuticals to combat spurious drugs menace, following which the apex pricing body has started collecting data from the companies.

The reluctance in revealing the data has been attributed to the reduction in process loss following better manufacturing practices. The allowable process loss is less than the actual loss even if the GMP costs have gone up. The yield improvement, however, remains in fractions. The companies do not want to yield this reduction in cost to the patients.

A leading industry source said here that with the change in the overall perception — that corporates cannot keep fighting the NPPA — would lead to better compliance in terms of sharing data.

IDMA secretary general Dara B Patel said with the simplification of the forms, companies would happily come forward to give the data. The data thus share will be coded to ensure secrecy.

narendrannaircn@express2.indexp.co.in