INDIAN DRUGMAKERS TO FACE DIFFERING DRUG PRICES

The introduction in India of a maximum retail price (MRP) inclusive of all taxes for drugs starting in October will create two pricing options for pharmaceutical companies throughout the country.

Drugmakers will have to either print separate packaging for different states or choose the lowest MRP and sell their products at a uniform price across the country. While the first option would be vastly complicated, the second option may have a negative impact on profits.

The addition of MRP inclusive of taxes to the existing MRP plus local taxes only affects scheduled drugs under price control. Companies will have to calculate the MRP based on the ceiling prices fixed by the National Pharmaceutical Pricing Authority.

The main complaint of industry associations is the absence of a proper formula, one that takes into account all local taxes, to calculate the prices.