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			As the government plans to overhaul the existing system of fixing drug prices, one of the amendments (of the Drug Price Control Order, (DPCO) 2013), that is under active consideration is to remove reference to specific strength (like 5 mg, 10 mg, etc) forms of a drug. If this happens, almost a quarter of the Rs 1.2-trillion Indian pharma market in value terms would come under price control, from around 17 per cent now.&nbsp;</div>
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			At present, the ceiling prices of over 850 essential medicines (that come under the National List of Essential Medicines, or NLEM) are capped by the government. The ceiling prices of NLEM medicines are allowed to increase every year in accordance with the wholesale price index. Medicines outside the NLEM are allowed an annual increase of 10 per cent or so.&nbsp;</div>
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			Currently, price regulation is limited to drugs covered under the NLEM in specific strengths. This basically gives leeway to pharma manufacturers to push sales of units of the NLEM drugs in different strengths. Let&rsquo;s say, the price control order mentions strength of 100 mg, the drugmaker may push sales (through doctors or retailers, etc) of the 250 mg strength of the same drug.&nbsp;<br />
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			&ldquo;If the reference to strength is done away with, then the coverage of the NLEM increases by around 40 per cent, and thereby around 24 per cent of the IPM would be covered by price control as against a current 17 per cent,&rdquo; said an industry source.&nbsp;</div>
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			Senior official of a leading pharma company too confirmed that discussions along these lines are on. &ldquo;While there is no clarity on the final pharma policy, several proposals are under consideration - removal of reference to strengths of drugs being one of them,&rdquo; he added.&nbsp;</div>
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			A senior official in the government said that many things were under consideration, and more clarity would emerge in about a month or so. He did not wish to share details of the amendments under consideration.&nbsp;</div>
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			Among other things, the government is planning to restructure the pricing regulator (National Pharma Pricing Authority), apart from bringing in changes in the DPCO 2013. The government think tank NITI Aayog had met representatives from the pharma lobby groups earlier this year to take industry feedback on matters related to drug pricing.&nbsp;</div>
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			As such, drug prices in India are relatively low compared to developed nations, claimed pharma industry insiders. &ldquo;If more drugs are brought under price control, it may not necessarily increase offtake of medicines. The opposite is also true; the price rise in medicines does not affect sales significantly,&rdquo; said an industry insider.&nbsp;</div>
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Around 17% of the Rs 1.2-trillion Indian pharma market is now under price control

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Now, one-fourth of Indian pharma market to be under price control

Around 17% of the Rs 1.2-trillion Indian pharma market is now under price control