The move, which will rationalise trading margin gradually, is anticipated to be disclosed shortly since it allows for better execution and provides the industry time to adapt to changes.
According to sources in the health ministry, the central government intends to lower the cost of essential medications by regulating trade margins.
Price margin is the distinction between the maximum retail price (MRP) for patients and the price to trade for manufacturers. A senior official in the ministry of health and family welfare claims that the Center is working to lower the cost of medications used to treat diabetes, cardiovascular conditions, and chronic kidney ailments.
The sources said the move is anticipated to be revealed soon and that trading margin will be rationalised gradually in order to improve execution and give the industry time to adapt to changes.
According to sources, a certain medicine category, such as those for diabetes or kidney disorders, would have its trade margins reduced this time around, similar to how the margins in the anti-cancer category were reduced earlier. watchdog for drug prices For the past few months, the National Pharmaceutical Pricing Authority (NPPA) has been developing the strategy.
The NPPA had set a limit on trade margins for 42 certain non-scheduled anti-cancer medications in 2018–19. Mansukh Mandaviya, the Union Health Minister, claimed in the Lok Sabha that the action led to a drop of up to 90% in the MRP of 526 brands of these medications.
The insider claimed that NPPA performed a study this time, and the rationalisation will be based on the findings of that investigation.
According to NPPA’s study on TMR analysis, a trader’s margin increases when tablet prices rise.
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