MNCs could gain from low Indian drug prices

An Indian government committee is currently looking into the possibility of pre-marketing price negotiation for patented medicines and is likely to recommend a lenient view on such drugs, the local news service India Abroad says it has learnt.

The move follows the recent trend among multinational pharmaceutical companies to launch patented medicines with India-specific price tags that are less than international prices may help the companies in the long run. The Indian unit of US-based Merck & Co recently launched its cervical cancer vaccine, Gardasil, in India at less than half the price it charges its US consumers. Similarly, global drug giant Pfizer introduced its blockbuster erectile dysfunction medicine, Viagra (sildenafil), at a much lower price than in the USA (Marketletters passim).

A committee, headed by a deputy secretary in the Department of Pharmaceuticals, had taken note of these voluntary price reductions and would suggest faster marketing approvals for such products, a senior Chemicals and Fertilisers Ministry official told India Abroad. The committee is finalizing its report after a year-long interaction with various industry associations and civil society groups. It is also monitoring similar price control mechanisms in other countries.