NEW INDIAN LAW TO EXAMINE ESSENTIAL DRUGS PRICING

A controversial new legal amendment being drafted in India could reform the country's price controls system, replacing the notorious Drugs Price Control Order (DPCO), which covers 40% of the market. The act will cover price controls on patented drugs, and may also establish a commission to resolve cases of overcharging.

There are currently widespread complaints that India's retail sector is failing to pass savings from cheap generics on to consumers. Meanwhile, much of the pricing control system has been paralysed by a recent Supreme Court judgment, despite a growing official mood that tougher controls on essential drugs are needed following the introduction of new patent laws.

According to local reports, a new three-member Settlement Commission will assume responsibility for settling disputes, with the NPPA pricing panel taking on the task of monitoring drug prices. About 50 cases are pending with the existing settlement body, the DPLRC.