Authors: Ashutosh Kolte; Hoshiar Mal; Mugdha Fulambrikar; Aishwarya Jagtap
Addresses: Department of Management Sciences (PUMBA), Savitribai Phule Pune University, India ' FLAME University, Pune, 412115, India ' Department of Management Sciences (PUMBA), Savitribai Phule Pune University, India ' Department of Management Sciences (PUMBA), Savitribai Phule Pune University, India
Abstract: In India, drug prices are controlled and are commonly known as Drug Price Control Orders (DPCO) issued under the Indian Essential Commodities Act of 1955. It is governed by the National Pharmaceutical Pricing Policy (NPPP) and accordingly, a National List for Essential Medicines (NLEM) was formulated. DPCO is useful for controlling the prices of life-saving drugs that are essential in the current scenario of healthcare and diseases. All the essential drugs are included under DPCO and a ceiling price is formulated. Drug prices cannot exceed the limit stipulated by DPCO. We have studied DPCO and discussed its impact on the pharmaceutical sector. The paper encompasses the brief history of DPCO, its contents, objectives, etc. Effects of DPCO on foreign trade is also analysed in this paper. We have attempted to find the effects of drug price control and its implications on the industry as a whole. We have also attempted to gaze future prospects for the pharmaceutical industry.
Keywords: pharmaceutical industry; price control; drug pricing; pricing policy; bulk drugs; exports; wholesaler margin; essential drugs; healthcare; Drug Price Control Orders; DPCO; India.
International Journal of Intelligent Enterprise, 2021 Vol.8 No.1, pp.90 - 104
Received: 29 Jun 2019
Accepted: 26 Sep 2019
Published online: 22 Dec 2020 *