E-DRUG: Price Regulation in Sri Lanka (6)
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Indian Government had a formula for calculating the retail prices of manufactured medicines through the the DPCO 1995 ( drugs price control order,1995) regulated through a body known as NPPA. the national pharmaceutical pricing authority. Only controlled i..e certain category of drugs (known as scheduled drugs) were put under regulation of the pricing authority-NPPA..
The retail price was calculated using a set formula which takes into account raw material cost, manufacuting cost, packing material cost, and post manufacturing expenses, and trade margins etc.
Thus the government of SriLanka can regulate only those life saving/scarcely available drugs which it feels exceed the prices based on a formula similar to that devised by NPPA. And leave the rest to market forces.
This may solve the pricing disputes initiated in Sri Lanka.. I should also add that over the years in India many drugs were removed from the scheduled category due to competition in market forces.
CK Aiyer,
Professor , (retired)
Pharmaceutical management
India
"chandrasekar kalyanram" <chandrarobert@yahoo.com.au>