'Cap On Generic Drug Prices Needed'

By forcing it to lower prices of drugs, is the government penalising the pharma industry to overcome shortcomings in the public health infrastructure?
How are we penalising the industry? To ensure that those below the poverty line get affordable drugs, the government has plans to provide Rs 3,000 crore. This year alone, around 1,20,000 families would be covered under this programme, for which the industry has not been asked to contribute funds. We are only asking it to cut the prices of those drugs where their profit margins are way above the manufacturing cost.

Pharmaceuticals are withdrawing price-controlled drugs and pushing sales of expensive substitutes...
The use of a particular drug does not depend on the manufacturing company, but on market mechanics. Cheaper drugs have lower promotional funds. Unfortunately, the use of a drug depends on medical practitioners; patients buy the drug prescribed by the doctors, who may not necessarily recommend a cheaper drug. When the demand for a price-controlled or cheaper drug starts declining, it is but natural that it goes off the chemists' shelf.

So what is the government planning to do to correct this practice?
We're already in dialogue with state governments to promote the use of unbranded generic medicines—they are the cheapest compared to branded generic drugs. At a recent meeting of the pharmaceutical advisory committee, it was decided that there should be a cap on the prices of even generic drugs. There's consensus in the industry for the need to have a cap on margins. However, in the matter of branded generic drugs, we have set up a committee to look into the issue. In addition, there is a proposal in the new pharmaceutical policy being framed for bringing more essential drugs under control.