The Organisation of Pharmaceutical Producers of India (OPPI), representing leading multinational pharmaceutical companies, calls for a more predictable drug pricing policy in India. This comes in response to the government’s use of Paragraph 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.
The Call for Predictability
In its presentation to the Department of Pharmaceuticals (DoP), OPPI emphasized the need for stable and predictable pricing policies. They argue that frequent changes, especially those made under Paragraph 19 of the DPCO, create uncertainty and disrupt the industry. Paragraph 19 allows the NPPA to reduce prices significantly whenever it deems it necessary for the public good. This provision has been used in the past to lower the costs of critical medical devices like cardiac stents and knee implants by up to 87%.
The Impact of Paragraph 19
The NPPA has invoked Paragraph 19 multiple times, notably in 2013, 2014, and 2019, to make essential medical treatments more affordable. While this has benefited patients by making life-saving devices and drugs more accessible, it has also created challenges for pharmaceutical companies, which must navigate sudden and substantial price cuts. These unpredictable changes can affect their ability to plan long-term investments and operations.
The Industry’s Perspective
OPPI’s plea to the DoP highlights the need for a balanced approach that ensures affordability without compromising the industry’s stability. They suggest that predictable pricing policies will help multinational companies maintain a steady supply of essential drugs and medical devices in the Indian market. Stability in pricing will also encourage more investment in the pharmaceutical sector, fostering innovation and the development of new treatments.
Ongoing Discussions
The DoP is currently hosting stakeholder discussions to explore potential adjustments to drug and medical device pricing policies. These discussions aim to address the concerns of various stakeholders, including pharmaceutical companies, healthcare providers, and patient advocacy groups. The goal is to find a middle ground that ensures both affordability for patients and sustainability for the industry.
Conclusion
As the Indian pharmaceutical landscape continues to evolve, the need for predictable and stable pricing policies becomes increasingly important. The OPPI’s call for a more consistent approach to drug pricing reflects a broader industry desire for a regulatory environment that supports both patient access to affordable treatments and the continued growth and innovation of the pharmaceutical sector. By fostering open dialogue and collaboration among stakeholders, India can work towards a pricing policy that balances the needs of patients and the industry alike.
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