Several fault-lines in Indian pharma

The key issue when prescribing generic drugs in India is quality, not price, with Indian doctors relying on the reputation of companies that have demonstrated their commitment to quality over time. A new study has found that the perceived difference in the quality of various brands of generic drugs that can be prescribed interchangeably is one of the major barriers to effective price competition in India's drug market, reports The Pharma Letter’s India correspondent.

The pharmaceutical market in India is dominated by 'branded' generics which enjoy a price premium though they are not superior to 'unbranded' generics in either Pharmacopoeia or therapeutic value. Aggressive marketing of branded generics has led to higher prices according to a market study by the Competition Commission of India (CCI).

Pharmaceuticals, including generic drugs, account for about 43.2% of out-of-pocket healthcare expenditure in India, according to the CCI study, and about 62.7% of the total health spending in the country.