Panel to reform drug pricing authority packed with industry representatives

New Delhi: A committee constituted for "institutional reforms" of the National Pharmaceutical Pricing Authority (NPPA) is filled with representatives of the industry that the Authority is supposed to regulate. Public health activists have pointed out the absurdity and the conflict of interest in the Department of Pharmaceuticals (DoP) constituting the committee with 14 pharma associations' representatives included as "special invitees".

The committee, initially constituted on March 12, had a core group of the secretary DoP, chairperson NPPA, and its Senior Economic Advisor with two special invitees, secretary-general of the Indian Pharmaceutical Alliance (IPA), and CEO of the Indian Drug Manufacturers Association.

However, after DoP received several representations from other industry associations for the inclusion of their representatives as special invitees, the list of special invitees was expanded on April 24 to add 12 representatives of trade groups and pharma associations including CII, FICCI, ASSOCHAM, US-India Strategic Partnership Forum, Organisation of Pharmaceutical Producers of India, and Association of Indian Medical Device Industry.

Not only will the industry representatives be part of reforming the pricing authority, but they will also be part of drafting the new Drug and Medical Devices (Control) Order, which is supposed to regulate the price of their products.

"The standard practice is for stakeholders to be consulted by the government committee. The committee fixes hearings and the various stakeholders appear before it and give their inputs. But how can they be part of the committee? It is such an obvious conflict of interest," pointed out Malini Aisola of the All India Drug Action Network (AIDAN), an advocacy group working on the rational use of medicines and on improving access to drugs.

NPPA is supposed to regulate the pricing of drugs and ensure their availability and accessibility. The Drug Price Control Order is the order by which price control is enforced, and that is one which is going to be overhauled. These are in the public interest, but the committee to examine the working of the DPCO is dominated by the pharma industry, which has always opposed price control even though only about 14 per cent of drugs by value and 25 per cent by volume are estimated to be under price control.

"Will the pricing control system be reformed in the interest of the industry or the public? It is a clear case of policy capture by the industry. How can the industry be inside a committee to decide on the regulation of the industry?" asked Aisola.