Ahmedabad: Retail prices of several non-scheduled medicines are expected to rise from July as pharmaceutical companies begin passing on higher input costs caused by a sharp increase in active pharmaceutical ingredient (API) prices owing to the West Asia conflict, industry officials said.Trade and industry representatives said prices of various APIs and bulk drugs have risen by 30-50% since Feb, prompting many companies to increase prices of non-scheduled medicines by up to 10% during Apr and May. Pharmacies are expected to see the impact once the batches carrying the new prices enter the market.This year, the govt permitted only a 0.6% increase in the prices of scheduled drugs, including essential medicines, under the Drug Price Control Order (DPCO), while allowing companies to raise non-scheduled medicine prices by up to 10% once a year.Medicines likely to be affected include painkillers, several antibiotics, vitamins and minerals, dermatology products, some respiratory medicines and psychotropic drugs. Industry estimates show that around 384 drugs and 1,109 formulations and combinations fall under the scheduled drugs category, while a large number of commonly used medicines for pain, fever, skin conditions and nutritional supplements remain outside price control.Gokul Jaykrishna, chairman of FICCI Gujarat, said, “After remaining stable for two years, bulk drug prices increased sharply due to the West Asia conflict, hurting pharma companies’ margins.”Dr Viranchi Shah, national spokesperson of Indian Drug Manufacturers’ Association, said the industry body was in dialogue with the govt for temporary relief under DPCO to balance industry concerns and patients’ needs.Amit Thakkar, president of The Drug Marketing and Manufacturing Association, said companies were using their annual revision window to offset the steep rise in raw material costs. “This year, input costs have risen much more than usual, so many companies are implementing the maximum increase allowed under their pricing review cycle,” he said, adding that packaging materials have also become more expensive.Jashvant Patel, president of Federation of Gujarat State Chemists and Druggists Associations, said consumers may not see the increase immediately because older stocks are still moving through the supply chain. “The retail impact is expected from July or Aug because inventories at different levels are typically sufficient for three to four months,” he said.Industry bodies have also urged the govt to allow an additional price increase this year, citing extraordinary pressure on domestic margins. Sources said the govt is examining mechanisms to ensure any future decline in raw material prices is passed on to patients.
