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The Department of Pharmaceuticals (DoP)'s rather protracted effort to finsalise a policy on pricing of patented drugs before they are imported into the country is yet to bear fruit, as a decision on pricing policy on patented medicines is still pending with the department.
Even though the DoP had constituted an inter-ministerial committee of joint secretaries of different ministries as early as in February, 2014 to find a pricing formula for fixing the prices of patented drugs before they are imported into country, the committee is yet to come out with a lasting solution to the issue. “While the committee has met several times in recent months, the decision on a patented medicines pricing policy is still pending,” according to sources.
In fact, a final decision on pricing of patented drugs has been evading the government for several years now. The inter-ministerial committee, under the chairmanship of joint secretary (DoP), was constituted in the light of the diverse opinion of different stakeholders received on DoP's earlier report on patented drugs. The DoP's action in this regard comes after the utter failure of the department to fix the prices of patented drugs in the country even though the department had held negotiations, re-negotiations and discussions with various stakeholders on the issue during the last several years.
The DoP had some years ago constituted an expert panel to suggest a method of reference pricing, price negotiations or differential pricing, etc. that could be applied for pricing of patented medicines and medical devices before their marketing approval in India. After several years of dilly-dallying on the issue, the panel submitted its report to the DoP in February, 2013, which recommended an international reference pricing scheme with a purchasing power parity adjustment for government procured patented medicines, and those patented medicines provided through health insurance. The Committee also considered whether the price negotiation of a patented medicine should be linked with its marketing approval.
Immediately after the submission of the report by the panel, the DoP had asked the stakeholders and experts to send their comments and suggestions to take a final view on the report. But, as it received diverse opinions from different stakeholders, the DoP in February, 2014 decided to constitute an inter-ministerial committee to look into the issues and suggest ways and means to fix the prices of patented drugs in the country.
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