Key objective: to make essential drugs accessible at affordable prices to common people while providing a long-term stable policy environment for the pharmaceutical sector.
Cap on “unreasonable trade margins”:
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The government is planning to fix the trade margins on drugs.
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Move is aimed to bring down the costs and create a level-playing field for the pharma industry.
Ending “unethical marketing practices”: of pharmaceutical firms and marketing companies by luring doctors to recommend particular brands through all-expenses-paid ‘educational conventions’ and other incentives.
New Agency for regulation of marketing: regulation for marketing practice which is at present voluntary will be made ‘mandatory’ and an agency for the implementation would also be assigned.
Practice at present:
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The government fixes ceiling prices of all drugs under the National List of Essential Medicines (NLEM) .
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Price fixation of these drugs is carried out by the National Pharmaceutical Pricing Authority (NPPA).