Indian drug price controls confirmed

A draft note for India's federal government cabinet prepared by the Ministry of Chemicals and Fertilizers, which has responsibility for thepharmaceutical sector, states that the prices of 74 drugs will continue to be frozen at their current levels under the Drug Price Control Order (DPCO) for one more year.

Additionally, as previously reported, 354 essential medicines will be brought under the DPCO for the first time (Marketletter May 15). However, the new retail controlled ceiling prices will carry an enhanced margin, that is maximum allowable post-manufacturing expense.

The draft cabinet note will be discussed and approved by federal cabinet and referred to Parliament for approval. The Chemicals and Fertiliser Ministry, according to some government officials, has proposed different kinds of cost-based control models for the 354 drugs mentioned in the National List of Essentials Medicines.