Drug Prices Sharp Rise after Decontrol

after Decontrol Wishvas Rane The sharp rise in drug prices has been facilitated by the new policy adopted by the government on drug pricing.
UNDER the 1995 DPCO, drug units are entitled tor 18 per cent post-tax return on net worth if bulk drugs are manufactured from the basic stages, as against 16 per cent in the 1987 DPCO. This rise the drug manufacturers can claim justifiably. The bulk drug units making 6-APA and 7-ADCA intermediates for synthetic penicillin will now have to source penicillin G from local manufacturers to the extent of 70 per cent of their requirement. This government policy shows a clear shilt in favour of domestic penicillin G manufacturers. An inevitable outcome of this is likely to be a price increase of semisynthetic penicillins like ampicillin, amoxycillin and cephalexin.