India To Review Drug Price Control To Make It More Lucrative For Pharma Companies: Report

The government is also seeking to dilute the authority of key agencies that decide the list and price of essential drugs, according to the report

By Rimin Dutt, The Huffington Post | October 4, 2016

In a move that could potentially result in higher prices of many essential drugs, the Indian government is considering a review of its current drug price control policy to encourage private investments in the sector, Economic Times reported.

 According to the ET report that cited a senior government official, Niti Aayog Chief Executive Officer Amitabh Kant has asked India’s health ministry to scrap all regulatory hurdles for pharma companies. Niti Aayog sees the drug control regime as hindering investments in the sector, it added.

The policy changing move, which is seeking to dilute the authority of the current drug price setting authorities, has backing from the Prime Minister’s Office, according to the report.

The senior official told ET, Central Drugs Standard Control Organisation, a key agency that regulates essential drugs, should not alone decide the list of essential drugs, and National Pharmaceutical Pricing Authority (NPPA), the agency responsible for setting the price of drugs, should not decide prices of all the essential drugs.

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