Indian govt moves on drug price negotiations

India' central government is reportedly considering abolishing the provision for mandatory price negotiation on all patent-protected drugs when a company applies for marketing approval, following heavy lobbying by US pharmaceutical companies, who consider "putting conditions on the price goes against the very spirit of patent protection, the reward an innovator gets for his investments in R&D."

The negotiating mechanism in the draft policy was intended to ensure that multinationals do not exorbitantly price their new products, and hamper the sale of cheaper copies. The provision was recommended by the Prime Minister's Task Force on Affordable Medicines. In the proposed new drug policy, the government may reverse this crucial provision, which had the potential to forestall market monopolies that drug multinational corporations secure by way of patent protection.