Drug companies get more pricing freedom
The government has amended the Drug Prices Control Order (DPCO) 2013, moving away from rigid uniform ceiling prices to allow premium pricing for advanced drug delivery formats, specialized packaging, and therapeutic modifications.
Pharmaceutical companies will now be rewarded for using superior packaging solutions or tweaking dosage forms of their medicines if they can convince the price regulator that such practices have a therapeutic value for patients. In addition, they can sell the same drug at different prices among bulk buyers like hospitals and retail consumers citing the different pack sizes required.
The government has introduced flexibility in determining the ceiling prices of “essential” drugs regulated under the Drug Prices Control Order (DPCO) 2013. Instead of notifying a single, uniform ceiling price for any “scheduled essential drug”, which are identified based on the active molecule, its specified standard dosage and strength—the price regulator will now factor in the specialised physical formats in which it is sold. The notified price caps could vary depending on the format and their efficacy for the patients.
