The Organisation of Pharmaceutical Producers of India (OPPI), representing major multinational pharmaceutical companies, has appealed to the Indian government for a more predictable drug pricing policy. OPPI has urged the authorities not to use Para 19 of the Drug Pricing Control Order (DPCO), which allows the National Pharmaceutical Pricing Authority (NPPA) to drastically reduce drug prices in the public interest for a specified period.
Para 19 of the DPCO was previously invoked by the NPPA to significantly lower the prices of cardiac stents and knee implants to ensure their affordability. The price of cardiac stents was reduced by 87%, and similar reductions were applied to orthopedic knee implants. These measures were aimed at making essential medical devices more accessible to the public.
In a presentation to the Department of Pharmaceuticals (DoP), OPPI stressed the need for a stable and predictable pricing policy, arguing that abrupt changes, such as those enacted under Para 19 in 2014 and 2019, create uncertainty in the market. OPPI believes that a consistent pricing framework is crucial for the pharmaceutical industry to plan and operate effectively.
The DoP has been engaging with various stakeholders to discuss potential reforms in the pricing structure for drugs and medical devices. These discussions are part of an ongoing effort to balance affordability for patients with the economic viability for pharmaceutical companies.
OPPI’s request highlights the tension between regulatory actions aimed at making healthcare affordable and the industry’s need for a stable pricing environment to support innovation and investment. While the government’s use of Para 19 has succeeded in reducing the costs of vital medical treatments, the pharmaceutical industry seeks assurances that future pricing policies will be more predictable and less disruptive.
In summary, OPPI is advocating for a drug pricing policy that ensures stability and predictability, opposing the unpredictable application of Para 19, which has previously led to significant price reductions of critical medical devices.
SOURCE:
ETHEALTH WORLD
