Drug prices have shot up phenomenally in India over the past decade and a half.A Planning Commissions expert group says there was nearly 40% rise in all drug prices between 1996 and 2006,thanks to the nations price decontrol policies of the 1990s.
Citing a study conducted in 2008,the commissions high-level expert group (HLEG) on universal health coverage,headed by K Srinath Reddy,says during the same period the price of controlled drugs rose by 0.02%,while those in the Essential Drug List (EDL) increased by 15%.The price of drugs that were neither under price control,nor under the EDL grew by 137%.
The report says,Taking advantage of lax regulations on drug pricing,the pharmaceutical industry has been able to reap high margins through complex price setting activities. It has been observed that the price of a therapeutically similar drug could vary around 1,000% between the most expensive and the cheapest brands.The variation between the market and procurement price of similar drugs could range anywhere between 100% and 5,000%.The panel recommended price control on all formulations in the EDL.The report says,Direct price control should be applied to formulations rather than on basic drugs.This is likely reduce as well as prevent a substantial rise in drug prices.
It brings to light the widespread use of irrational drugs.India,the report says,has the dubious distinction of its pharmaceutical market being flooded with about 90,000 formulation packs and brands.Drug Controller General of India (DCGI) estimated that about 46 banned fixed dose combination drugs (FDCs) continue to be marketed irrespective of the ban.About 1,067 FDCs are freely marketed with the state drug controllers approval,but without the DCGIs concurrence.
Citing a study conducted in 2008,the commissions high-level expert group (HLEG) on universal health coverage,headed by K Srinath Reddy,says during the same period the price of controlled drugs rose by 0.02%,while those in the Essential Drug List (EDL) increased by 15%.The price of drugs that were neither under price control,nor under the EDL grew by 137%.
The report says,Taking advantage of lax regulations on drug pricing,the pharmaceutical industry has been able to reap high margins through complex price setting activities. It has been observed that the price of a therapeutically similar drug could vary around 1,000% between the most expensive and the cheapest brands.The variation between the market and procurement price of similar drugs could range anywhere between 100% and 5,000%.The panel recommended price control on all formulations in the EDL.The report says,Direct price control should be applied to formulations rather than on basic drugs.This is likely reduce as well as prevent a substantial rise in drug prices.
It brings to light the widespread use of irrational drugs.India,the report says,has the dubious distinction of its pharmaceutical market being flooded with about 90,000 formulation packs and brands.Drug Controller General of India (DCGI) estimated that about 46 banned fixed dose combination drugs (FDCs) continue to be marketed irrespective of the ban.About 1,067 FDCs are freely marketed with the state drug controllers approval,but without the DCGIs concurrence.
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