New drug policy to cut cap prices of 650 common drugs

MUMBAI: Prices of 652 commonly used medicines under 27 therapeutic areas are likely to come down by 10-15% once the National Pharmaceutical Pricing Policy 2012 is notified, which is expected in a few days. The policy, which caps prices of essential drugs, was finalized recently after several twists and turns over the years.

It will cover a wide range of drugs, such as anti-infectives (Cetrizine), cardiac (Aten) and gastro-intestinal medicines (Ocid), pain-killers (Paracetamol) and anti-diabetic drugs ( insulin).

Imported medicines which are part of the essential drugs list will, for the first time, come under the policy's purview and face regulatory control. For example, prices of insulin, which companies like Eli Lilly and Novo Nordisk import into the country, will now be capped.

To promote indigenous research, prices of original research products having a patent in India will be exempt from price control for five years, sources said.

The policy will cover about 30% of the over Rs 67,000 crore domestic pharmaceutical market. The ceiling price will be computed using "the simple average method" of all drugs with over 1% market share under a particular therapeutic area. Meanwhile, the Supreme Court will hear on December 12 an ongoing case to reduce prices of essential drugs.