Minister of chemicals and fertilisers SS Dhindsa gave this assurance to representatives of three pharmaceutical industry bodies during a meeting called by him on Monday to discuss the finer points pertaining of research and development (r&d) and price control.

According to industry sources, the ministry of chemicals and fertilisers is expected to finalise the new drug policy and seek approval from the group of ministers next week.

The policy aims to reduce the span of price control on drugs, bring about the removal of control on overall profitability and introduce complete transparency in price fixation.

Representatives of three industry associations - the Indian Pharmaceutical Alliance (IPA), the Indian Drug Manufacturers Association (IDMA) and the Organisation of Pharmaceutical Producers of India (OPPI) besides Ranbaxy chairman and managing director DR Brar and senior vice president, BK Raizada met the minister to apprise him of various issues pertaining to the industry.

The three industry associations made a joint representation to the minister and called for reducing the span of price control in a phased manner. The industry has further sought policy support to develop opportunities in the field of collaborative research and initiate a suitable change in the policy for the removal of control on overall profitability.

The industry has called for maintaining a balance between the need to provide essential and life saving medicines of good quality at reasonable prices and the taking into account of industry imperatives to invest in research and development. The pharma industry currently attracts a three-tier control ie control on prices of bulk drugs, control on prices of formulations and control on overall profitability levels.

The industry, in its representation, has called for the upgradation of technology, the improvement of product quality, attracting fresh investments and the need to bring about a wider distribution in rural markets.

Apparently, the government has already said that it proposes to hike the foreign direct investment (FDI) limit in pharmaceuticals from the current 74 per cent to 100 per cent and goes well with the industry demand of freedom for attracting investments.

Thepharma industry has been clamouring for a reduction of the span of control. A representation made to the minister on Monday called for exemption from price control for all new drugs for 10 years as approved by the Drug Controller General of India (DCGI), for Novel Drug Delivery Systems (NDDS) as approved by the DCGI for better patient compliance and convenience, and lastly, for drugs derived from biotechnological processes - including vaccines, veterinary products and all medicines that are granted OTC status by the DCGI.

Theindustry has further sought complete transparency in any price fixation/revision process and has asked for a provision that will allow returning one copy of the price application to the manufacturer with appropriate explanatory notes that give the basis for price fixation.