Last Updated on September 30, 2024 by The Health Master
DPCO 2013
The pharma industry is calling for significant changes to the Drug Price Control Order 2013 (DPCO 2013), arguing that the current regulations are hindering fair competition and causing market distortions.
Pharma Industry leaders have specifically highlighted the need to eliminate Paragraph 13(2) of the DPCO, which they believe is leading to a dual pricing mechanism and creating unfair advantages for certain companies.
The Issue with Dual Pricing
Paragraph 13(2) of the DPCO 2013 allows for medicines to be sold at different prices depending on whether they are included in the National List of Essential Medicines (NLEM).
Industry representatives contend that this dual pricing system creates disparities in the market, favoring some companies over others and leading to price confusion among consumers and healthcare providers.
Also read: National List of Essential Medicines (NLEM)
A spokesperson from pharma industry emphasized the importance of a uniform pricing structure to ensure a level playing field for all industry participants.
“The dual pricing mechanism not only complicates the market but also goes against the principles of fair competition,” they stated.”
“Deleting Paragraph 13(2) would help create a more transparent and equitable pricing environment.”
Concerns Over Price Averaging
In addition to the dual pricing issue, the pharma industry has raised concerns about the pricing of formulations included in both previous and current versions of the NLEM.
Specifically, they have recommended the deletion of the clause in Paragraph 18(i) that mandates the re-averaging of prices for formulations that were part of the previous NLEM and are included again in the subsequent list.
Industry experts argue that this re-averaging requirement can lead to abrupt price changes, causing confusion and potential disruptions in the supply chain.
“By removing this clause, we can ensure more stable pricing, benefiting both manufacturers and consumers,” stated an industry representative.
The Impact on Manufacturers
Paragraph 13(2) imposes restrictions on existing manufacturers of scheduled formulations, preventing them from selling their products at the notified ceiling price if their current price is lower.
This can force many companies to market their products at unviable prices, despite increased input and quality costs.
Furthermore, the annual price revisions based on the wholesale price index (WPI) and the re-averaging of prices every five years (as mandated by Paragraph 18(i)) can lead to significant reductions in the ceiling price of scheduled formulations.
This can make it challenging for many companies to continue offering these products, especially when faced with rising costs.
Examples of Affected Molecules
Molecules like ciprofloxacin, co-trimoxazole, salbutamol, anti-TB drugs, and ibuprofen have been included in multiple versions of the DPCO and NLEM, subjecting them to successive and excessive price controls.
As a result, many companies have found it difficult to market these products due to continuous downward price revisions and price re-averaging.
In contrast, molecules like pilocarpine and timolol maleate, which have been included in recent versions of the NLEM but not in previous DPCOs, have not faced the same level of price pressure.
Disclaimer: This article contains information derived from the source mentioned below. Our team utilized an AI language model to rewrite and present the news or article in a unique format.
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