Drug prices likely to go up

At a time when the drug industry in the country is going to witness a sea change in pricing policy, the price of drugs in the state is set to increase by at least 10 per cent. Owing to the diesel price hike and the increase in price of raw materials, the increase in prices of medicines may be even higher, the sources said.

The major impact will be on the drugs for diabetes, heart disease, and lifestyle diseases. The price of antibiotics is also set to head northwards. The price hike will be effective November onwards.

“The drug prices normally increase in April and October every fiscal year. Considering the factors that contribute to the increase in production cost, the companies will increase prices by at least 10 per cent. The price hike for drugs treating lifestyle-related diseases will be higher as it is in abundant supply. We have identified as many as 16 diseases that can be closely associated with the IT field, and the prices of the drugs will surely witness a hike,” said M R Pradeep, Assistant Drugs Controller, Ernakulam.

In a landmark initiative, a panel of ministers has recommended that the ceiling price of a particular drug would be calculated by taking the weighted average of the prices of all the brands with more than one per cent market share. But players in the field doubt the practical nature of implementing the proposal, citing the severe protests from the major players against the move. But the recommendations do not rule out the possibility of a drug price hike in the near future, they said. The dealers’ association foresee an increase of 10-25 per cent in the prices of drugs. The association said that although prices will be increased in October, the increase may be evident only by November since new stocks hit the market by then.

“Earlier the price of drugs were increased twice in a financial year. But now companies are increasing the prices two to three times in a financial year. The price hike for a pack of 10 pills was in the range of 50 paise to `2 earlier, but now it is `3 to `4 per pack,” said O M Abdul Jaleel, secretary of All-Kerala Chemists and Druggists Association.

The drugs that are sold in the state come from Himachal Pradesh, Uttarakhand, Gujarat, Jammu and Kashmir and Tamil Nadu. The increase in transportation cost is another factor which contributes to the price rise of drugs in the state.