Published on: Oct 01, 2012 by Aparna Dutt Sharma, Chief Executive Officer, IBEF
The Group of Ministers (GoM) set up to determine the country's drug pricing policy recommended during the past week that retail prices of 348 essential drugs be fixed at the weighted average price of brands that have more than 1 per cent market share. This move is expected to lead to a reduction in prices of several costly brands while the prices of low-cost medicines will rise.
The move is seen as a boon for the consumers and should the policy is effective, the consumer can be expected to get a lower price and ensured availability of these medicines. At present, the government through the National Pharmaceutical Pricing Authority (NPPA), controls prices of 74 bulk drugs and their formulations. Analysts have also suggested in some of the news reports that this policy is unlikely to have a major impact on the earnings of pharmaceutical companies.
As and when the policy will become effective, it will benefit the consumer in a big way and improve the public healthcare scenario in the country.