New Delhi : Representatives of several small and medium-sized pharmaceutical companies have proposed that the government adopt a one-molecule-one-MRP formula instead of rationalizing the markup (TMR) for non-listed drugs to reduce their prices. They plan to discuss this during a meeting convened by union minister for health, chemicals and fertilizers Mansuh Mandavia with industry representatives on Tuesday. The government is preparing to apply the TMR formula to non-scheduled drugs.

As ET previously reported, the National Pharmaceutical Pricing Authority (NPPA), India’s price regulator, resumed discussions with stakeholders on the issue in May. The previous round of negotiations took place in November 2019. The trade margin is the difference between the price at which producers/importers sell goods to stockists and the price charged to consumers. The NPPA currently sets prices for drugs on the list. Prices for medicines not included in the list are allowed to increase by no more than 10% per year.

Tuesday’s meeting is likely to include Laghu Udyog Bharati, the Federation of Pharmaceutical Entrepreneurs, the Himachal Drug Manufacturers Association and the Generic Pharmaceutical Federation of India, among others.

“We are asking the government to find another way and apply a single formula for all segments,” said Rajesh Gupta, head of Laghu Udyog Bharati across India.