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“We welcome this move as it ends the uncertainty on the pricing policy that has been stuck for so many years. The shift to a market-based price control model is commendable as it puts an end to the arbitrary pricing regime. The consumer stands to benefit with lowered prices of medicines,” Dr Reddy’s vice chairman and managing director, Satish Reddy, stated in a press release here on Friday
He, however, said there was a need for the government to balance the interests of improving affordability of medicines with growth for the Indian pharmaceutical industry, which was heavily dependent on investments into research and development. The latter needed mechanisms that would spur an increase in innovation spend in the country.
“At a company level, we were aware of the upcoming policy and have factored in the impact, which is likely to be in the range of 3-4% of our finished dosage sales in India. We have plans in place to ride over this impact,” Reddy said.
The Centre had ushered in a new regime for pricing drugs and issued a new Drugs (Prices Control) Order, 2013, replacing the DPCO of 1995. The National Pharmaceuticals Pricing Authority would implement the new policy and the new DPCO.
