Price Difference Between Generic and Branded Medicines

The prices of generic medicines sold in the open market are generally at par with the prices of the branded medicines. However, there is a big difference in the prices of generic medicines sold through the Jan Aushadhi Drug stores vis-a-vis the prices of the branded medicines, as would be observed from the following illustration:-



The generic drugs being sold at the Jan Aushadhi Drug Stores are not only equal in quality but also have the same efficacy and potency as compared with the much expensive branded medicines. Under Drugs (Prices Control) Order, 1995 (DPCO, 1995), Government is mandated to control the prices of 74 bulk Drugs and its formulation as per the provisions of the said Order. National Pharmaceuticals Pricing Authority (NPPA) under the Department of Pharmaceuticals also monitors and regularly examines the movement in prices of non-scheduled formulations. The monthly reports of IMS Health and the information furnished by individual manufacturers are utilized for the purpose of monitoring prices of non-scheduled formulations. Wherever a price increase beyond 10% per annum is noticed, the manufacturer is asked to bring down the price voluntary failing which, subject to prescribed conditions, action is initiated under paragraph 10(b) of DPCO, 1995 for fixing the price of formulation in public interest. The list of price of generic medicines and the same branded medicines is not maintained by the Government.

The Jan Aushadhi Campaign was launched by the Department of Pharmaceuticals with the main objective to make available generic medicines at affordable price to all. In so far as supply of generic medicines is concerned, presently all the five Central Pharma Public Secor Undertakings (CPSUs) namely IDPL, BCPL, RDPL, KAPL & HAL are manufacturing and supplying generic medicines for sale at the Jan Aushadhi Stores. Wherever Jan Aushadhi Stores have been opened, the concerned State Governments are issuing instructions/guidelines to their Doctors in the Government Hospitals to prescribe generic medicines. Similar instructions are also reported to have been issued by the Ministry of Health and Family Welfare to the Doctors to prescribe medicines in generic names.

This information was given by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena in a written reply in the Rajya Sabha today.

(Release ID :89294)

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  • Anonymous 11 years ago

    treatment of cghs beneficiaries should be utterly cashless in hospitals, be it opd or indoor treatment.