The Central government is planning to introduce a new Drugs (Price Regulation and Control) Bill seeking replacement of the existing Drugs Price Control Order, enacted under the Essential Commodities Act to have complete control over the prices of patented drugs that are imported or manufactured in the country. The proposed law is meant to for effective regulation, monitoring and management of drug prices covering production, supply and distribution and trade and commerce in bulk drugs and formulations. The new bill would be finalized after the finalization of the new pharmaceutical policy, it is learnt.

According to sources, the government is working on the new bill alongside its efforts to finalise the new policy. The new law would equip central government to effectively regulate the prices of patented drugs through negotiations and instructions for differential pricing. While the price fixation can happen during health emergencies, price negotiations would be a routine affair for all highly priced patented drugs.

The new law would attempt to plug the loop holes that allow companies to give huge trade margins to the medicine trade sector. Strict labelling norms would also be spelt out.

The new bill would also see National Pharmaceutical Advisory Forum turning a permanent mechanism. The forum, set up at the behest of the C&F Minister Ram Vilas Paswan, will continue to function in an advisory capacity as its presence would be mandated by the new bill. Revamping and restructuring of National Pharmaceutical Pricing Authority (NPPA), fixing of severe penalties and provision to compound the offences would be incorporated in the new bill.

Official sources informed that the bill can be introduced in the Parliament even if the current plans to prepare new pharmaceutical policy don't materialize. According to them, the new law, replacing DPCO is to happen during the coming year.