Pharmaceutical organizations supporting medicine bank
- Post By : Khushboo Sharma
- Source: LIVEMINT
- Date: 05 June, 2018
The government is planning to ask the pharmaceutical organization to contribute medicines equivalent to 1% of their average profit in the past three years to create a medical bank that will be used during public health emergencies in India and abroad as per the CSR activity.
This participation, which is considered to be part of firms’ mandatory CSR activity, will be utilised for providing free medicines during public health crisis in India or in another freight nation, as the health ministry’s proposal said.
“The Drug Technical Advisory Board (at its 16 May meeting) decided that it should be left to companies to contribute on a voluntary basis but later, it will be made part of the rules, making it mandatory for the companies to share a part of their profit for a noble cause,” said S. Eswara Reddy,.
Drug Controller General of India. The health ministry will soon take up the matter with the law ministry to make necessary changes to the drugs and cosmetics rules.
“As long as it is out of the CSR provision, the industry would contribute happily as they would be saving lives of people,” said D.G. Shah, secretary general of the Indian Pharmaceutical Alliance, which represents 20 of the country’s biggest drug makers.
The companies which have net worth of more than Rs 500 crore or revenue is above 1,000 crore or net profit is higher than Rs 5 crores has to spend 2% of their average profit in the last three months on social development activities, this has been a mandate rule by CSR.
Many leading pharmacueutical organizations has warmly welcomed this and ready to support this contribution.R.C. Juneja, chairman of Mankind Pharma Ltd, lauded the proposal. “We wholeheartedly welcome this move and endorse such a decision. It is a very good idea provided it is implemented properly”.
Bejon Misra, founder of Patient Safety and Access Initiative of India Foundation and Partnership for Safe Medicines India Initiative, said India must make CSR funding public to improve safety, quality and accessibility of medicines to the vulnerable population.