Indi''a pharma majors Sun, Dr Reddys, Cadila and 14 others under US Congress probe for drug price hike
Wednesday, October 08, 2014
The aberrant price rise of drugs has led almost 14 companies come under the scanner of the US Congress. The US administrative authority lashed out at top 14 Indian Drug firms including- Sun Pharmaceuticals, Dr. Reddy’s Laboratories and Cadila healthcare.
The initialization began last week after PM Narendra Modi’s visit to the US. A probe by the Congress was initiated and the same was notified to the companies.
With issues regards to being in the priority watch list as per April 30, US Special 301 report still afresh in the Indian officials mind, this probe can certainly intensify matters as far as US and India ties in the sector are concerned.
Unlike India, the US follows free market strategy where drug pricing is governed by competition. The prices have considerably shot up by 40 to 83%. The companies have further been told to report the concerned matter with the Congress and prepare a detailed information brochure to facilitate discussions.
The US Congress has enumerated powers by which it can regulate foreign trade and commerce and imply necessary changes affecting foreign states.
The aberrant price rise of drugs has led almost 14 companies come under the scanner of the US Congress. The US administrative authority lashed out at top 14 Indian Drug firms including- Sun Pharmaceuticals, Dr. Reddy’s Laboratories and Cadila healthcare.
The initialization began last week after PM Narendra Modi’s visit to the US. A probe by the Congress was initiated and the same was notified to the companies.
With issues regards to being in the priority watch list as per April 30, US Special 301 report still afresh in the Indian officials mind, this probe can certainly intensify matters as far as US and India ties in the sector are concerned.
Unlike India, the US follows free market strategy where drug pricing is governed by competition. The prices have considerably shot up by 40 to 83%. The companies have further been told to report the concerned matter with the Congress and prepare a detailed information brochure to facilitate discussions.
The US Congress has enumerated powers by which it can regulate foreign trade and commerce and imply necessary changes affecting foreign states.
