The Issue of Drug Price Control *



Case Code : CLIBE067
Publication date : 2005
Subject : Business Environment
Industry : Pharma & Biotech
Length : 02 Pages


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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

This case discusses the issue of the proposed National Pharmaceutical Policy, 2006, the new drug price control policy in India. The pharma industry wants competition-based price monitoring instead of cost-based price control. However, the government is keen to add another 354 drugs to the list of drugs under price control.


On August 18, 2006, it was reported that pharmaceutical industry representatives had voluntarily agreed to restrict margins on unbranded generic drugs to 15% for wholesalers and 35% for retailers.

It was expected that this move could bring down the prices of most unbranded generic drugs by 50% to 60%, with effect from October 02, 2006.

The government was expected to issue a notification in this regard under the Drug Price Control Order, 1995 (DPCO, 1995).

This decision was one of the outcomes of a meeting, held on August 17, 2006, between the Union minister for Chemicals and Fertilizers, Ram Vilas Paswan and pharmaceutical industry representatives, to discuss various issues and proposals related to the proposed National Pharmaceutical Policy, 2006...

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Key words:
Drug Price Control Order, 1995 (DPCO, 1995), India, Pharmaceutical Industry, unbranded generic drugs, trade margins, wholesalers, retailers, competition-based price monitoring, National List of Essential Medicines, Union minister for Chemicals and Fertilizers, Ram Vilas Paswan, National Pharmaceutical Policy 2006

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