Drug Pricing Regulator Intends to Cut Prices for Crucial Medicines

India's medication pricing authority is aiming to limit pharmaceutical companies' profiting from crucial drugs. This has the potential to reduce the cost of medications such as vitamin A, vitamin C, glycerin, and anti-tetanus immunoglobulin. According to a report published by The Economic Times (ET).

Move to Regulate Drug Prices

Under Paragraph 19 of the Drugs Price Control Order (DPCO), 2013, the National Pharmaceutical Pricing Authority (NPPA) intends to establish price limitations. The NPPA intends to utilise its powers to serve the public interest; it has the authority to do so indefinitely in order to make vital medications more inexpensive to patients. 

Despite being the world's pharmacy, pricey medications in India can push families to the brink of destitution. According to a top official reported by ET. The report also states from the authority meeting, the NPPA has been using para 19 in specific circumstances in the public's best interests to make pharmaceuticals inexpensive for an indefinite amount of time.

India has been conducting a medicine pricing war. The number of pharmaceuticals subject to price controls has continuously increased from 74 in 1995 to over 860 by 2019. The prevalent view in the country is that costs should be reduced by measures such as classifying pharmaceuticals as necessary, weakening intellectual property (IP) rights, and setting price restrictions. As a result of these steps, the Indian government recently announced that certain anti-cancer medications are now up to 90% cheaper. 

Reaction from Pharma Sector 

The shift might have financial ramifications for major pharmaceutical companies such as Abbott Laboratories, Bayer AG, GlaxoSmithKline, and many more, The ET report suggested. Some pharma lobbyists believe the measure will be met with pushback from the pharmaceutical sector.

Increased Demand for Immunity Boosting Medications

Vitamin and mineral supplements are becoming increasingly popular in Indian markets. The demand for immunity boosters has surged by 30-40 per cent in the aftermath of the COVID-19 pandemic, according to data from the All India Organisation of Chemists and Druggists (AIOCD).

In a previous ruling in 2017, the medication pricing regulator reduced the price of stents by 87%. Furthermore, by invoking Paragraph 19 of the Drugs Prices Control Order (DPCO), 2013, orthopaedic knee implants were rendered more affordable for a year. The price cut was later extended for an additional year.

Overall, capping the prices of certain crucial drugs may help the underprivileged population access necessary medicines when in need. This can be the difference between life and death in some cases. However, resistance from the pharma lobby may force authorities to rethink these measures. Going by the general sentiment of the country it seems imperative that the prices of certain medicines be regulated by the state, this can be an important step in making medicines more accessible to a large section of society.