Chairman of the “National Pharmaceutical Pricing Authority” (NPPA), Mr. Bhupendra Singh was recently ousted ahead of time without a replacement.
There seems to lack of transparency and credibility in the appointments and removals at multiple regulatory bodies in the country.
What creates suspicion?
NPPA - NPPA is the pricing regulator for medicines and medical devices in the country and works under the Union Ministry of Chemical and Fertilizers.
Mr. Bhupendra was moved out ahead of time, after a little over two years at the helm of NPPA even before identifying a replacement.
Notably, his predecessor Mr. Injeti Srinivas was also transferred out in less than a year of assuming office.
These episodes are particularly uncomforting because there seems to be a possible industry pressure in the ouster of these chairpersons.
Notably, both these people had taken critical action on drugs and medical devices manufacturers and established price controls for medical implants.
These were actually laudable efforts to bust inflated distribution margins (up to 1000% plus in some cases) on cardiac stents and other consumables.
DCGI - DCGI's office is entrusted with giving approvals to drugs and other products marketed in the country and works under the Union Health Ministry.
Dr. GN Singh, who has had a respectable tenure as the “Drug Controller General of India” (DCGI) was recently replaced arbitrarily.
It is also tasked with inspecting drug manufacturing facilities across the country, besides watching over all clinical trials (both animals and humans).
GN Singh’s tenure saw significant action in cleaning up the clinical trials segment and the sale of fixed-dose combination medicines in the country.
Others - There were a bunch of inexplicable transfers in the health ministry, including that of “Director General of Health Services” Dr Jagdish Prasad.
What is the way ahead?
The Malice - While one can’t prove that industry pressure caused the ouster of these people from office, there is ample scope for speculation in that regard.
Considering the harsh manner in which the above officers were shunted out, it gives little incentive for a new person in office to operate independently.
The high-headed approach of the government is likely to erode the institutional credibility of regulators, which is of serious concern.
Way Forward - Instead of muzzling the regulators, the government needs to groom probable candidates with the right scientific and administrative skills.
Regulators need functional autonomy, and a fixed term (say five years) to implement policies and better structure regulations
And if anyone is removed before their term ends, it needs to be for inefficiency or corruption and that reason needs to be made public.
Stakeholder involvement in policy formulations needs to be enhanced by regularly engaging - the pharma industry, health service providers and the civil society at large.
