India to end more bulk drug price controls

India's new drug policy, scheduled to be introduced in the currentsession of parliament ending mid-May, proposes the abolition of statutory price controls on at least 39 bulk drugs and their formulations, industry sources have told the Marketletter's local correspondent. Price controls are expected to drop from 40% of India's bulk drug output to about 25%.

The prices of 74 bulk drugs and their formulations are now fixed by the government under the Drug Price Control Order. Foreign drugmakers and major Indian firms say the DPCO leaves them with little margin to encourage R&D funding or attract fresh foreign investment in India. The new policy would exempt drugs developed with local R&D from price controls for 15 years, the sources note.