Govt, pharma companies working on pricing mechanism for off-patent drugs

Experts say this will create a predictable pricing regime for both the consumer and manufacturer

The Centre and the pharma industry are working on a pricing mechanism for drugs that are going off patent.

The move is significant against the backdrop of the recent patent expiries of key diabetes drugs. A stakeholders’ meeting was held last Friday between industry representatives and the Department of Pharmaceuticals, multiple industry sources said. They shared details of the pricing mechanism in the works.

“While the final decision is yet to be made, the pricing mechanism is likely to set a ceiling price for drugs going off patent at 50 per cent of the innovator price. Add to this, if