Dr Reddy's Lab said the existence of government-imposed price controls and mandatory discounts and rebates can limit the revenues we earn from our products
Hyderabad: Country's second largest drug maker Dr Reddy's Laboratories (DRL) said it may see some pressure on revenues as governments around the globe, including the US and India, attempt to cut healthcare costs, reports PTI.
In to a filing to the US Securities and Exchange Commission, DRL, which is listed on NYSE, said these pressures are particularly strong given the lingering effects of the recent global economic and financial crisis, including the ongoing debt crisis in certain countries in Europe.
"The existence of government-imposed price controls and mandatory discounts and rebates can limit the revenues we earn from our products."
"We expect these efforts to continue in the year ended March 2013 as healthcare payers around the globe - in particular government-controlled health authorities, insurance companies and managed care organisations - step up initiatives to reduce the overall cost of healthcare," DRL said.
Increasing expenditures for healthcare has been the subject of considerable public attention in almost every jurisdiction where we conduct business, it said.
Patient Protection and Affordable Care Act (PPACA) of USA is one of the most significant healthcare reform measures in the United States in decades, and is expected to significantly impact the US pharmaceutical industry, it said.
The PPACA changed the computations used to determine Medicaid rebates owed by manufacturers by redefining the average manufacturer's price (AMP).
AMP for most branded drugs has been increased to 23.1% from 15% of and 13% instead of 11% of AMP for generic drugs, DRL said in the filing.
The company, however, said it may see an increase in revenues by virtue of the PPACA's anticipated extension of health insurance to "tens of millions of previously uninsured Americans".
On the Indian market, DRL said during FY2011-12, the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilisers proposed a revised national Pharmaceutical Pricing policy.
The draft policy, proposed to apply price controls to 348 drugs listed in the National List of Essential Medicines (as opposed to the 74 drugs currently subject to price control in India). It could also revise the price control mechanism by benchmarking the prices based on market dynamics and eliminating the current cost-based model.
Pending finalisation of the policy, its impact on our business cannot be ascertained, DRL said in the filing.
Commenting on German market, it said the German government has introduced several healthcare reforms in order to control healthcare spending and promote the prescribing of generic drugs.
On the Russian market, DRL said during FY2011-12, the country introduced a Federal Law titled -- 'On the Foundations of Healthcare for Russian Citizens'.
About 5.71 lakh farmers from Odisha would get benefit from the Rastriya Krishi Bima Yojana
Bhubaneswar: Odisha farmers affected by the last year's drought and floods, would get compensation of Rs675.32 crore as crop insurance under the Rastriya Krishi Bima Yojana, says a PTI report quoting official sources.
Chief Minister Naveen Patnaik sanctioned Rs277.72 crore towards state's share in the RKBY, they said adding that about 5.71 lakh farmers would get benefit from the scheme.
The farmers in all the 30 districts of the state were badly hit in twin floods and drought during the 2011 Kharif season.
"As the state government had considered panchayat as unit for the RKBY, a large number of farmers would get benefit," an official release issued by the Chief Minister's Office said.
Allowing an appeal by two sons of a woman fruit vendor, the HC said, though the deceased was aged, her sons were dependant on her and she was heading the family
Madurai: Madras High Court bench while rejecting the verdict given by Motor Vehicle Accident Compensation Tribunal enhanced compensation awarded to the accident victim's family by a lower court, reports PTI.
The case was related to a person aged 60, who was killed in an accident. The Tribunal has said that she would not have been in a position to earn a livelihood and would have been dependant on her sons
Allowing an appeal by two sons of a woman fruit vendor, who was earning around Rs3000 a month, Justice S Vimala agreed with appellant’s counsel that though the deceased was aged, her sons were dependant on her and she was heading the family.
"Just because the petitioners have attained majority it cannot be concluded they cannot be dependents. Maybe the nature of dependency may vary, depending upon needs of the children. But it can never be said they could not be the dependants."
He enhanced compensation awarded by a lower court from Rs1 lakh to Rs2.31 lakh, saying there could never be retirement age for a mother. There may be retirement from government or private service and not from household work.
Aged women are not accustomed to the concept of tiredness. It was common knowledge that aged parents remained the beacon light for future generations in the family.
The Judge said the Tribunal could take note of the fact there were old persons on wheelchairs, seen on moving trains and markets, sitting and doing business.
"Just because the deceased was aged the contention that she was not earning cannot be accepted. When there is escalation in costs, nobody can afford to sit and eat. In this case there is positive evidence, as contended by the appellants that their mother was engaged in fruit selling."
The Tribunals are not expected to turn a Nelson's eye to the private evidence and to act on whims and fancies or presumptions. This type of approach towards award of compensation would frustrate the object of legislation.
The Judge said considering the evidence she was earning Rs3,000 a month, deducting Rs1,000 for her personal expenses, the monthly dependency would be Rs2000. Total compensation towards loss of dependency would come to Rs2.16 lakh.
The lower court had awarded Rs1 lakh and directed the National Insurance Company to give it to her two sons. The balance should be paid within eight weeks.
The woman died on 28 January 2010 after being hit by a car. Her sons demanded compensation of Rs8 lakh, as they were completely dependent on their mother.
The tribunal awarded Rs1 lakh just "for loss of love and affection" No compensation was awarded under any other head.