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LATEST NEWS UPDATES | Medicines to get lot cheaper under new drug price policy -Soma Das

Medicines to get lot cheaper under new drug price policy -Soma Das

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published Published on Oct 3, 2013   modified Modified on Oct 3, 2013
-The Economic Times


NEW DELHI: Getting better is getting cheaper. The new drug price policy, the first after 18 years and expected to fully come into effect over the next six months, will reduce average middle class household spend on medicines by over 20%. For some crucial medicines, savings could be as much as 50% or more.

The drug price regulator is crunching numbers to measure the impact of the new pricing policy. And initial estimates, officials told ET, suggest significant savings in middle class medicine budgets.

A 2007 McKinsey report had predicted that healthcare spend will account for 13% of average household budget by 2025, the third-largest expenditure category after food and beverages and transportation.

So, going forward, savings could be more, said government officials working on the new drug price policy.

More so because the biggest beneficiary of the policy will be the growing middle class, which spends a large part of its regular healthcare budget on medicines treating lifestyle-related diseases like diabetes and hypertension. Price cuts will be the steepest in this class of drugs.

The domestic drug market is worth Rs 70,000 crore, and 20% of it is accounted for by "essential drugs".

Essential drugs in government terminology include life-saving and other most commonly used drugs, and medicines for most lifestyle-related diseases.


The Economic Times, 2 October, 2013, http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/pharmaceuticals/medicines-to-get-lot-cheaper-under-new-drug-price-policy/articleshow/2


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