India considering 'appropriate' pricing mechanism for off-patent drugs

As Indian drugmakers cry foul on not receiving an appropriate "incentive for incremental innovation," the government and the domestic pharmaceutical industry are to sit together to iron out the kinks on a pricing mechanism for drugs that are going off patent, reports The Pharma Letter’s India correspondent.

The move is significant given the recent patent expirations of key diabetes drugs. During the past two months, there have been more than 200 new brands launched by 50 domestic companies that are jostling for space among existing entities.

Though patients have benefitted as a result of the crash in drug prices for diabetes medications, domestic drug companies are caught in a price war. Market share dynamics have also changed dramatically. There has been rapid growth in India's diabetes segment compared with the overall drug market in the country.