Government Controlling Drugs And Prices Impacting Pharmaceuticals Market

Posted on: Jan-2018 | Medical & Health

The central government is preparing to curb the prices of combine drugs, which include 14 types of drugs. These drugs are used in the treatment of diseases such as high blood pressure, sugar, and cholesterol. The National Pharmaceutical Pricing Authority (NPPA) released this statement by issuing a statement to the press on Monday. The Central Drug Control Organization confirmed this on Wednesday. NPPA Deputy Director Baljit Singh said that drug manufacturers have asked to follow the new policy on Maximum Retail Price (MRP).

In the last 4 years, the government has taken several steps to control the cost of medicines. The steps taken by the government to control the price of medicines were for the first time only for single formulation drugs. And due to this, many private pharmaceutical manufacturers were charging a very high price for drugs from the customers. Prices of sugar, cholesterol, and high pressure were increased significantly. In the year 2013, the government had taken steps to control the prices of 342 medicines. Then in the year 2015, the prices of 108 medicines were curbed by the government. However, there were also medicines of sugar and cholesterol on the second list of drugs that cost price, but these were applicable for single-molecule medicines.

Some pharmaceutical manufacturers were also producing these medicines as combination drugs and they were charging a lot of value from customers. Now, the price control by the government is estimated to be of great benefit to the patients. Although the responsibility of monitoring the control of prices will be entirely on the state government, it will completely depend on the state governments to monitor how many drugs should be included in the listing.

On one side, consumers are relieved with the decision, but the pharmaceutical manufacturers are facing significant impact on their business, Thus, impacting the growth of the pharmaceutical market.