The new drug price control order (DPCO 2013) notified by the government of India evoked a mixed response from the industry and the pharmaceutical trade. The Indian Pharmaceutical Association (IPA) Tamil Nadu branch secretary J Jayaseelan said the new DPCO contains a number of positive things which will be definitely helpful for the patients and he felt the market based pricing is a welcome initiative.

“Last two decades’ price control mechanism did not help our people on longer run. When the price control was initiated all the drugs which came under it were marketed and distributed by more than 100 companies for each product. On implementation of the irrational method of fixing prices on cos plus formula, the net result was against the patients’ interest. Out of 74 drugs under price control today, more than 40 per cent is not available in the market. In the case of the remaining 60 per cent, only a few companies are manufacturing them now and that too without promotion. The people are not benefited because these drugs are either not available or not prescribed because of no promotion. In the new policy, the method adopted is good and hence we expect this problem will not occur.”

Senior Pharmacist and leader of Bengal Pharmaceutical Association, Dr Subhash C Mandal, said the most significant development in the new order is that the price of new drugs will be fixed on the basis of ‘pharmacoeconomic’ principle, which is one of the modern concepts introduced formally in India first time. “It is good that  348 essential medicines are covered under price control 2013. Outcome could have been better if the national list of essential medicines (NLEM) was updated covering the current prevalent diseases. Pricing on the basis of cost based mechanism may be more effective than market based mechanism to improve access to essential medicines. However disposal of long standing stalemate will give further scope for improving the situation through further discussion,” he added.

K Kannan, president of the Confederation of Indian Pharmaceutical Manufacturers and Marketers Association (CIPMMA) felt that the new drug policy lacks clarity in two things. “It states that manufacturers have to ensure new MRP in the market in 45 days. This is not practical. And, there is no clarity on combinations, They have mentioned that a product “Launched” by a company under scheduled category in combination with one which is not scheduled will be considered as a new drug and approval should be taken for the price. Will ‘launched’ mean prospectively or also include products already launched? he asked.

Joydeep Sarkar, general secretary of the All India Chemists & Distributors Federation (AICDF) responded that the DPCO-2013 concentrates more on the interest of common people for adequate supply of life saving drugs at affordable prices. “We personally welcome the 'amended order', whereas, the traders have been deprived of mostly. In determining trade margin for the chemists, it is mentioned that 16 per cent is eligible for new products which is contrary to business interest. Having scope to insert the 'provision of wholesalers' margin, it has been rejected once again within the format,” he said.

Dr R S Thakur, president of the Federation of Indian Pharmaceutical Organisations (FIPO) said it is a welcome move as prices of 270 medicines will fall by 20 per cent, HIV drugs by 70 per cent and a few by 88 per cent. Government must be conscious about quality by ensuring mandatory testing of each batch of all products within a month of entering into the market, he opined.

N Anandan, general secretary of Tamil Nadu Chemists and Druggists Association responded that the new order will reduce the retailers’ trade margin to three per cent. He said his organisation is welcoming the price reduction for the benefit of the public, but objecting the reduction of the trade margin.