Costs of raw material for drugs rise by up to 140%
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API prices of certain drugs like fever and pain relief drug paracetamol and life-saving antibiotic Meropenem (also used for Covid), and anti-diabetic metformin, have more than doubled to as high as 139%, 127% and 124% respectively, putting the spotlight back on India’s near total-dependence on the Dragon.
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(This story originally appeared in on Jul 20, 2021)A steep rise in the cost of raw materials for essential drugs, called active pharmaceutical ingredients (API) in pharma circles, by up to 140% in certain cases since the pre-pandemic level, is pinching the industry hard. The overall increase, averaging nearly 50% in the wake of high-priced imports and supply disruptions from China, have raised doubts on the availability of drugs and could lead to shortages, particularly of those that are key in Covid therapy.
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Cabinet approves pharmaceutical strategy
CABINET has approved the Ministry of Industry and Commerce five year pharmaceutical strategy aimed at reviving companies to improve availability of locally manufactured medicines at affordable prices.
Industry and Commerce minister Sekai Nzenza said the pharmaceutical strategy, which will run from 2021 to 2025, was birthed after realising that the local industry was contributing a paltry 12% to the medicine on the market. The country imports 88% of the life-saving drugs.
She said government institutions and hospitals will be encouraged to buy drugs from local manufacturers to boost production.
Nzenza noted that the thrust of the strategy was to increase drug production from 30% to 60% while revenue is expected to increase from US$31,5 million to US$150 million by the year 2025.
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