Pharma News
Government plans a crackdown on pharma firms selling drugs as dietary supplements
The government is planning a crackdown on drug companies selling medicines under the garb of dietary supplements, which are not regulated. Senior officials in the department of pharmaceuticals and the health ministry said several drug makers have secured approval for drugs as dietary supplements under the Prevention of Food Adulteration Act, where price and other regulations on drugs do not apply. This not only allows them to sell the product at a price more than the maximum retail price fixed by the government for the ingredient drug but also helps them avoid inspection by the authorities. “In addition to higher cost, there is also a health issue as they are being...
Read MorePMEAC comes up with 3 pricing models to fix retail prices of 328 drugs
The Prime Minister’s Economic Advisory Council has suggested a complex combination of three pricing models to fix retail prices of 348 essential drugs to balance industry’s concerns and public health. The proposal, however, has drawn the ire of drug makers who say it is a watered down version of the health ministry’s proposals. The council has proposed that for medicines facing “insufficient competition” or a monopoly-like situation, the retail price should be fixed on the basis of cost of production with a top up to cover marketing costs and profits for companies. It has defined insufficient competition as a situation where a drug with an...
Read MoreJ&J Targets Buys in OTC Segment
Johnson & Johnson (J&J) India will reduce its dependence on its neargeneric Johnson’s baby care range of products that makes up for half its revenues, and focus more on feminine hygiene, skin-care and over-the-counter (OTC) items. “India is one of our top three markets in the Asia-Pacific region, the other two being China and Australia,” the reclusive company’s group chairman for its Asia-Pacific division, Grace Castano, told media in an interaction. J&J is very keen to do whatever it takes to regain lost ground from rivals like Procter & Gamble and Hindustan Unilever, especially in the feminine hygiene and skin-care segments. The...
Read MoreHealth ministry opposes new mechanism for pricing of drugs
Fearing an across-the-board increase in the prices of essential drugs, the health ministry is seeking to prevail on the department of pharmaceuti- cals (DoP) to rethink its policy to move to market-based pricing of drugs. The current drug pricing regime is based on cost-plus pricing, where prices are determined on the basis of raw materials, competition and profit margin. However, in Oc- tober, the DoP introduced the National Pharmaceutical Pricing Policy 2011 (NPPP), which recommended market-based pricing. However, the health ministry has objected to this methodology. At the core of the dispute is the proposal that drug prices should be determined on the basis of the...
Read MoreFidelity PE Arm Buys Over 20% in Pharma Co Aptuit for Rs. 200 cr
Fidelity Growth Partners, the India-focused private equity arm of Fidelity Worldwide, has invested close to Rs. 200 crore in Hyderabad-based pharmaceutical company Aptuit Laurus for over 20% stake, an indication of the continuing lure of the Indian pharma market for foreign investors. Aptuit, which has a turnover of Rs. 500 crore, manufactures active pharmaceutical ingredients, the key component of medicines. It is also a contract manufacturer. “We’re positive on pharma sector in a big way… US pharmaceutical giants are tightening their in-house R&D budgets; US companies will continue to outsource contract manufacturing business to Indian companies,” said...
Read MoreGSK’s Big Global Meet Medicine for India’s Soul
As many as 250 top executives of UK-based GSK Consumer Healthcare, led by its President Emma Walmsley, will fly down to Delhi in early February for an annual leadership meet, its first such conclave outside the UK and US, throwing the spotlight on India’s emergence as one of the fastest-growing consumer markets of the world. In the last few years, several transnational companies ranging from GE to PepsiCo to Nestle have held executive committee or board meetings in India, but this is the first time a foreign firm is bringing such a large contingent of managers to the country. The top layer of executives from 30 countries will attend the leadership conference,...
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