INDIAN CONSUMER GROUPS OPPOSE NEW REGULATORY PLANS

A number of Indian consumer groups have opposed radical new regulatory measures suggested by a government panel. A "task force" set up by the Prime Minister's Office has recommended that some essential drugs be banned from displaying brand names, and urged tough new price controls.

It is not clear how many products would be affected by the possible ban, but consumer groups have asserted the importance of branding in maintaining public confidence. The same groups argue that planned pricing measures could also damage the quality of pharmaceuticals in India.

Drug industry groups such as the IDMA and the OPPI have already protested a new "maximum retail price" tax regime on pharmaceuticals, which has increased the tax burden on drugs to 37% of selling prices. However, under the task force's plans, essential drugs could be included within the basket of key products subject to government price controls, which includes items such as rice, wheat and coal.

However, any such proposal will first have to receive the blessing of India's Supreme Court. If approved, prices are also likely to be tracked by a new retail price index for pharmaceuticals.

India already has a wholesale drug price index for 54 products, but a new scheme could see the price of over 100 mainly high-value drugs, such as cardiovascular, diabetes and central nervous system products come under greater scrutiny. According to local reports, a system of this kind would give a greater weighting to higher-priced drugs in the same therapeutic class, potentially easing the introduction of a true reference pricing system.