New drug pricing policy a welcome move for consumers
The policy is expected to bring uniformity in pricing of essential drugs.
Mumbai, May 19, 2013: The new drug pricing policy which was recently notified by the government is expected to be a boon for consumers as will bring an end to arbitrary pricing regime and bring down medicine prices. The pricing policy has been seen as a step in the right direction by the pharma players.
It may be noted here that the Department of Pharmaceuticals notified the Drugs (Prices Control) Order 2013 last week under which prices of 348 medicines in the National List of Essential Medicines (NLEM) have been brought under price control, thus replacing an earlier order of 1995 that regulated prices of only 74 bulk drugs.
As per the order, the retail price of 348 drugs will be fixed at the simple average price of brands that have more than 1 per cent market share.
Both industry and experts have hailed the move from the government as it is based on average price mechanism and thus follows competition. Given the price competition, the policy is unlikely to have any major negative implication for the sector.