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Prices of 348 medicines, including life-saving drugs, will soon be cheaper by up to 80 per cent, with the new Drug Price Control Order coming into effect.
Industry experts said the implementation of the new drug policy will lead to slashing of prices of many anti-cancer and anti-infective drugs by 50-80 per cent.
According to the website of the Department of Pharmaceuticals, the government has notified the Drug Prices Control Order (DPCO), 2013, with effect from May 15, replacing the 1995 order. The new order will give power to the National Pharmaceutical Pricing Policy (NPPP), 2012, to regulate prices of 348 essential drugs.
Drug Prices Control Order, 1995, regulated prices of 74 bulk drugs. The 2012 policy was approved by the Cabinet on November 22 and notified on December 7.
According to the new drugs policy, all strengths and dosages specified in the National List of Essential Medicines, 2011, would be under the price control. The policy stated that prices of medicines will be capped by taking the simple average of all brands that have more than one per cent market share, instead of input costs. The DPCO, 2013, issued under the Essential Commodities Act, 1955, will lay the framework of the drug policy and mechanism of regulating prices.
The order said the National Pharmaceuticals Pricing Authority will be the implementation authority for the new policy and the new DPCO.
NPPP-2012 took long to finalise due to differences between the ministries of health and chemicals and fertilisers. Other stakeholders, industry and non-government organisations also expressed concerns at the pricing model that was suggested.
