The Government is planning to rationalize the trade margin formula in order to reduce drug prices. National Pharmaceutical Pricing Authority (NPPA) held a stakeholder meeting last week to discuss their suggestions. The meeting was attended by several representatives from the Indian Drug manufacturers association, Indian Pharmaceutical Alliance, All India Drug action network, etc. 

According to the All India Organisation of Chemist And Druggists, a 10% trade margin for wholesale dealers on PTR and 20% for retailers on MRP has been suggested.

The Department of Pharmaceuticals has proposed a restricted trade margin of 43% for non-commercial drugs similar to the previous case of cancer drugs. The DoP also suggested a 100% trade margin capping for all formulations and doses. It also proposed low-priced medicines be exempted from TMR.

Source: The Ecoonomic Times