Indian government mulls price controls on patented drugs

The Indian government is looking to widen the scope of price controls on pharmaceuticals. In a move that could create another potential hurdle for multinational drug companies doing business in India, the Department of Pharmaceuticals is examining a proposal to look into the pricing of patented drugs in the country, reports The Pharma Letter’s India correspondent.

"A committee constituted to look into the issue of price negotiation mechanisms for patented drugs had earlier submitted its report. This was shelved because the market dynamics had changed drastically. The matter is now being re-examined in the department," according to official sources. Currently, there is no system of price negotiation for patented drugs.

The official said the earlier committee had looked into the practices adopted by major developing countries and developed nations like Canada, France, Australia, and was told to look at these countries before framing any new guidelines in India.