, , , ,

yatin shah
Yatin Shah is a Post-graduate student of Pharmacy at Department of Pharmaceutics and Pharmaceutical Technology, Ramanbhai Patel College of Pharmacy, Charotar University of Science and Technology (CHARUSAT), Changa, INDIA.

The Indian pharmaceutical market could take a revenue hit of 4-5% due to solid price cuts resulting from the revised Drug Price Control Order (DPCO), notified on May 16, 2013.

The revised DPCO covered 348 drugs that are deemed to be essential medicines, effective July 1, 2013. The DPCO allowed pharmaceutical companies to withdraw existing products from the market within 45 days and introduce the same drugs in line with the new pricing regime, which is expected to translate into a value erosion of over $260 million (1600 Crores INR), according to pharma market research firm IMS Health India.

The price control regime was calculated on the cost of production to a model based on the market price average, and fixed at the simple average of the price of the three top-selling brands. A list published by National Pharmaceutical Pricing Authority covered essential medicine such as flu and infections like acute diseases.

The Indian units of international pharma players such as GlaxoSmithKline, Ranbaxy, Pfizer, Abbott Healthcare, and domestic drug makers including Cadila Healthcare, Cipla, and Alembic Pharmaceuticals were hit because of their large portfolios of the above mentioned category of drugs. On the other side, players such as Glenmark, Dr. Reddy’s Labs, Sun Pharma and Lupin, that focus mainly on chronic diseases, were got some relief.

Dr. Reddy’s Vice Chairman Satish Reddy said the company “welcomed the new price control method that ends the uncertainty on the pricing policy that has been stuck for so many years.” “Any move that makes healthcare affordable for patients is welcome, but drug price controls aren’t the only solution. The Indian government can’t expect the industry to bear the full burden of making medicines affordable,” said by Kiran Mazumdar, Chairman of Biocon.

The revised DPCO marginally affected the chain including pharma manufacturers, retail and wholesale pharmacies, but it was a positive revision in share of patients.

What do you think about the revised DPCO by the Indian government? 


More about the Author

Yatin Shah is an Executive Member of an AAPS Student Chapter. He received a bachelor degree of Pharmacy from Gujarat Technological University (GTU). He is also pursuing his Post Graduate Diploma in Intellectual Property Rights (PGDIPR) from IGNOU, INDIA.