A clearing house of ideas, info, alternatives, on rural India's multiple crises

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	'title' => 'Focus on spurious, substandard drugs is more important',
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-The Economic Times<br />
<br />
The Union Cabinet has okayed a new price-control formula for pharmaceuticals, which seeks to cap prices at the arithmetic average of all drugs with more than 1% market share in any therapeutic segment that is to be brought under price control. Given that the existing system of fixing prices of select drugs is on the basis of costs, which is rigid, intrusive and prone to manipulation as well, the market-based method of price cap seems to be a step in the right direction. It would appear to favour low-cost, unbranded generic drugs, or 'generic generics', although what doctors actually prescribe may well be a function of focused marketing on the part of branded drug producers.<br />
<br />
More importantly, the pricing policy aims to vastly enlarge the scope for price control to over 30% of the market, 348 drugs, up from 74 bulk drugs and formulations. Apart from being a complete reversal of the policy of recent years, it would have myriad unintended consequences given the real problem of spurious and substandard drugs in a Rs 65,000-crore industry with long tails of drug firms in most segments. Note that back in 1970, 100% of drugs were under price control, but the ratio was progressively reduced to allow rigorous price competition in the large domestic pharma market. Note also that the Pronab Sen task force on drug pricing in 2005 put the extent of price control at just about 10% of total drugs production.<br />
<br />
Successive expert panels have recommended a reasonably small national list of essential medicines for effective policy implementation. We need policy focus to provide standard quality and reasonable prices for the most essential medicines and not aim at ambitious regulatory overreach, given the oversight and monitoring requirements.<br />
<br />
The drug regulatory mechanism needs to be significantly strengthened both at the Centre and the states. As for methodology of price control, it would make sense to provide flexibility and opt, say, for the median (most prevalent) price instead of mechanically insisting on the arithmetic mean price in a segment. Otherwise, producers may simply stop production of certain drugs.<br />
<br />
</div>',
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-The Economic Times

The Union Cabinet has okayed a new price-control formula for pharmaceuticals, which seeks to cap prices at the arithmetic average of all drugs with more than 1% market share in any therapeutic segment that is to be brought under price control. Given that the existing system of fixing prices of select drugs is on the basis of costs, which is rigid, intrusive and prone to manipulation as well,...'
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	'id' => (int) 18228,
	'title' => 'Focus on spurious, substandard drugs is more important',
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-The Economic Times<br />
<br />
The Union Cabinet has okayed a new price-control formula for pharmaceuticals, which seeks to cap prices at the arithmetic average of all drugs with more than 1% market share in any therapeutic segment that is to be brought under price control. Given that the existing system of fixing prices of select drugs is on the basis of costs, which is rigid, intrusive and prone to manipulation as well, the market-based method of price cap seems to be a step in the right direction. It would appear to favour low-cost, unbranded generic drugs, or 'generic generics', although what doctors actually prescribe may well be a function of focused marketing on the part of branded drug producers.<br />
<br />
More importantly, the pricing policy aims to vastly enlarge the scope for price control to over 30% of the market, 348 drugs, up from 74 bulk drugs and formulations. Apart from being a complete reversal of the policy of recent years, it would have myriad unintended consequences given the real problem of spurious and substandard drugs in a Rs 65,000-crore industry with long tails of drug firms in most segments. Note that back in 1970, 100% of drugs were under price control, but the ratio was progressively reduced to allow rigorous price competition in the large domestic pharma market. Note also that the Pronab Sen task force on drug pricing in 2005 put the extent of price control at just about 10% of total drugs production.<br />
<br />
Successive expert panels have recommended a reasonably small national list of essential medicines for effective policy implementation. We need policy focus to provide standard quality and reasonable prices for the most essential medicines and not aim at ambitious regulatory overreach, given the oversight and monitoring requirements.<br />
<br />
The drug regulatory mechanism needs to be significantly strengthened both at the Centre and the states. As for methodology of price control, it would make sense to provide flexibility and opt, say, for the median (most prevalent) price instead of mechanically insisting on the arithmetic mean price in a segment. Otherwise, producers may simply stop production of certain drugs.<br />
<br />
</div>',
	'credit_writer' => 'The Economic Times, 29 November, 2012, http://economictimes.indiatimes.com/opinion/editorial/focus-on-spurious-substandard-drugs-is-more-important/articleshow/17408868.cms',
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-The Economic Times

The Union Cabinet has okayed a new price-control formula for pharmaceuticals, which seeks to cap prices at the arithmetic average of all drugs with more than 1% market share in any therapeutic segment that is to be brought under price control. Given that the existing system of fixing prices of select drugs is on the basis of costs, which is rigid, intrusive and prone to manipulation as well,...'
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