The agenda is to reduce prices of 29 anti-retroviral drugs and 69 anti-cancer drugs by bringing down the companies' profit margin on these drugs.
The committee had already negotiated with trade bodies like All India Organisation of Chemists & Druggists and other regional trade associations to reduce the wholesale and retail margins on these drugs from the existing 20 per cent and 10 per cent to 16 per cent and 8 per cent, respectively, said G S Sandhu, joint secretary, ministry of chemicals and petrochemicals.
He was in the city to attend the India and CIS International Pharma Conference, organised by Pharmaceutical Export Promotion Council.
The proposed price reduction is based on the suggestions made by the special committee, in consultation with Indian National AIDS Control Organisation, the National Institute for Pharmaceutical Education and Research and the office of the Drug Controller General of India.
Following the recommendations of the committee to slash the prices of these life saving drugs, the ministry will also write to the state governments to exempt them from VAT and other levies.
The Centre has, in the Budget for 2006-07, exempted these drugs from excise duty. Since the import duty on 10 anti-retroviral and 14 cancer drugs has been reduced in the Union Budget, the government wants to ensure that the companies pass the benefit to patients.
The proposed meeting with the drug companies would also discuss these points, Sandhu added.
The outcome of the proposed price cut would be reflected in the new pharmaceutical policy, which is expected to be out in two months. The new policy is currently under the consideration of the Cabinet.
According to a NACO's estimate, 5.13 million people are living with HIV in India currently, which is a marginal increase from the 2003 estimate. In 2002, the estimate stood at 4.58 million.
Majority of the HIV/AIDS patients are from the below poverty line (BPL) families. This is the reason that the government is affecting an immediate price cut for the anti-retroviral drugs in the country, Sandhu said.
The government proposes to impose two per cent health cess aimed at gathering Rs 3,200-6,000 crore (Rs 32 to 60 billion) a year. The fund is to be used to take care of the healthcare needs of BPL families.
The proposed cess will fund insurance schemes, HIV/AIDS drugs and cancer treatment for members of such families.
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