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Govt exempts innovative medicines from price control for first 5 years

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Teena Thacker    04 January 2019

The government on Thursday exempted innovative drugs developed by foreign companies from price control for five years. The move will give Indian patients access to drugs that are currently only available abroad. This includes orphan drugs that are used for treating rare medical conditions.

In amendments to the Drugs Price Control Order (DPCO), the Ministry of Chemicals and Fertilizers exempted producers of new drugs patented under the Indian Patent Act, 1970 (39 of 1970) from price regulation for five years from the date of commencement of its commercial marketing by the manufacturer in the country.

NGOs have; however, criticized the decision saying that it narrows the space for the government to make highly expensive medicines for life-threatening conditions more affordable to the public. According to an expert, the move will restrain the government from subjecting expensive drugs to price control regardless of a public health emergency.

Malini Aisola, co-convenor of All India Drug Action Network, stated that this is a shocking move in an election year.

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