AIDS drugs may come under price control

December 10, 2004

Cancer, AIDS drugs may come under price control

KG NARENDRANATH Posted online: Friday, December 10, 2004 at 0000 hours

IST

NEW DELHI, DEC 9: The government has asked the National AIDS Control

Organisation (NACO) and the All India Institute of Medical Sciences

(Aiims) to identify AIDS and cancer drugs that might be brought under

price control.

The Sandhu Committee on drug price control has argued that the

existing two economic criteria — of mass consumption and absence of

sufficient competition — for price control would not automatically

bring a large number of critical care drugs under price control.

Both the 1994 drug policy — which is now operational — and pharma

policy 2002 — which is stuck in the Supreme Court — broadly apply

these two economic criteria. The two policies differ only in terms of

the thresholds specified.

The government is, for the first time, planning to add a non-economic

criteria for price control on drugs, that is, the therapeutic use of

the drug. A senior official told FE that there was a need to include

cancer and AIDS drugs under price control, as high prices might add to

the cost of managing these diseases.

Control on price of anti-HIV (anti-retrovirus) drugs would come in

handy for NACO to reduce the cost of its AIDS control programme, now

buttressed with a a new component — free drug supply to patients. NACO

has been negotiating with domestic majors to procure drugs at prices

lower than market prices.

The health ministry and NACO had also proposed to the finance ministry

to bring down the cost of AIDS drugs by cutting customs duties for

inputs.

The Sandhu Committee, which will come out with its final report in a

month or so, does not wish to alter the current premise for price

control, as reflected in the existing two economic criteria. " The

basic criteria would remain, " said the official. The committee is in

the process of preparing a new list of drugs for price control.

" There won't be a major increase in the number of drugs under price

control, " officials said. At present, 74 drugs are under price

control. The statement is significant as the number of `essential

drugs', as listed by the health ministry is higher than this at 354,

and this list was by and large indicative for the committee as it

lists the drugs for price control.

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