On November 22, 2012, Cabinet approved the new national pharmaceutical policy which will bar the
rising prices essential medicines. There are 348 medicines which are enlisted in the National
List of Essential Medicines. The new drug policy will restrict the manufacturer from selling
the essential medicines which are used by the majority of population in India with high profit
margins. It is also expected that with implementation of new policy prices of drugs will be
slashed by 50% to 80%. Indian pharmaceutical market which is world’s third largest in terms of
volume has given mixed responses to the new drug policy.
At present Ministry of chemicals and fertilizers controls the prices of only 74 essential drugs
which were 347 in 1979 when the first time Drug Pricing Control Order was implemented. The
idea of drug price controlling was inspired from the concept of essential medicines formulated by
World Health Organization in 1977. Latest approved policy will allow the government to control
the prices of 40% of the drugs sold in India. The Supreme Court of India in October this year
after hearing PIL filed by a NGO (All India Drug Action Network) asked the government to set
up a drug price regulation mechanism. In response to the directions of apex court a GoM was
also formed headed by Agriculture Minister Sharad Pawar. Pharmaceutical industry took this
decision with mixed response but with a common concern that it will encourage disinvestment.
Indian Pharmaceutical Alliance (IPA) Secretary General told PTI that industry profit will
come down to Rs 4000 crore from Rs 67,500 crore. However, credit rating agency ICRA have
expected long term profits for multinational companies in the purview of new drug policy.
The health services which has been critically ill and of poor quality. Moreover, costly medicines
hits sharply to the hard earned saving of a common man. Government which falls way short in
providing basic amenities like proper public health care systems have finally took a reformist
decision. Market experts are eying this as a sort of relief when the escalating prices of all most
everything are burning the pockets of common man.
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