DPCO 2013 is truly a win-win move for the patient, pharma industry and the Government. Indian pharma industry generates approximately Rs 70,000 crore turnover with a 15 per cent gross margin which by any means is not profiteering. However cheaper/affordable medicines are a requirement in all societies for all times to come. What NLEM 2012 and DPCO 2013 have done is that they have carved out key medications in each and every therapy to cover all the common illnesses. An adequate list of medicines has been brought under price control to ensure that the less fortunates have access to medicines for every illness. The ball is now in the doctors’ court – how they choose economical alternatives for patients who cannot afford to pay more. Even in these medicines, ensuring market-based pricing instead of cost-based policy will in turn ensures that top quality players stay interested in the market and do not discontinue/withdraw the brands – like what happened to 40 per cent of the medicines in the 1995 DPCO list. Thus the twin aim of making medicines affordable and available can be achieved with DPCO 2013. The aim of the Government (or even the most ardent of patient groups) was never to punish any pharma company or kill the profitability of the industry. After all, it gives great export earning plus employment to lakhs of people employed in pharma companies as well as engaged in the pharma trade, not to mention the significant excise and corporate profit tax that it generates. The policy will pinch, but most companies will be able to overcome that and the sector will remain viable and vibrant.
To summarise about this policy, it gives patients quality medicines at affordable prices while allowing the survival and growth of the pharma sector. Truly a win-win policy for all stakeholders.
– Ameesh Masurekar, Director, AIOCD Pharmasofttech AWACS
