A government panel in India is drafting the new
pricing policy for drugs which is set to recommend fiscal incentives
including excise waivers to generic or unbranded drugs in India.
The new policy is also likely to remove these drugs from the ambit
of price control. It can prove to be a big high for the generic
drug manufacturers like Ranbaxy and Dr. Reddy.
At present, all drugs attract a 16% excise duty
in India. The levy is on 60% of the maximum retail price. The Prime
Minister’s task force too had recommended for reducing the
excise duty on all drugs to 8%.
Generic drugs are usually sold by the name of the
active pharmaceutical ingredient present in the drug. It constitutes
of about 10% of the Rs 23,000 crore retail pharmaceutical markets
at present. Besides, a major chunk of the institutional market for
drugs, estimated at Rs 4,000 crore, also belongs to these unbranded
drugs.
To read more visit:
http://www.financialexpress.com/fe_full_story.php?content_id=108305
