India drops planned price caps on non-essential drugs

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India drops planned price caps on non-essential drugs

Home/Policies & Legislation | Posted 24/10/2014 0 Post your comment

The Indian Government has scrapped plans to extend price cuts on both generic and brand-name drugs to include ‘non-essential’ drugs.

The government, via the introduction of a new Drug Price Control Order (DPCO) in May 2013, already regulates the prices of 348 ‘essential drugs’ included in the country’s National List of Essential Medicines [1]. However, it was also planning to extend the powers of the National Pharmaceutical Pricing Authority (NPPA) to cap the prices of essential drugs to also include a list of 108 non-essential drugs. This authority to cap the prices of non-essential drugs was, however, withdrawn on 22 September 2014. No reasons for the withdrawal were given.

NPPA capped the prices of 108 non-essential drugs in July 2014, but the decision was greeted with protests and has been challenged in courts in India, where the prices of generics are already low compared with other markets.

The decision does not affect medicines considered essential, which are still subject to price caps. During September 2014, NPPA added a further 36 drugs to the list of 348 essential medicines subject to price caps. The list now covers about 30% of medicines sold in India.

India plans further cuts to drug prices

Reference
1. GaBI Online - Generics and Biosimilars Initiative. India introduces new drug pricing control [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2014 Oct 24]. Available from: www.gabionline.net/Policies-Legislation/India-introduces-new-drug-pricing-control

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Source: NPPA