Category Archives: Drug pricing policies


‘Make In India’ is focusing on Pharmaceutical sector this week. Considering India as one of the major markets for Pharmaceuticals in the world this is a great move. Right from the beginning there has been much hype about Indian Prime Minister Mr. Narendra Modi’s dream project ‘Make In India’. According to experts the program is promising and will have great and enduring effect on Indian economy through manufacturing industry.

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Reduced production

In the recent economic slowdown where the industrial sector in India has been grossly affected, the Pharmaceutical Industry is no exception. The Pharmaceutical Industry has been facing pressure on the export front because of the ups and downs in the dollar, stricter laws from the US FDA, increase in the generic drug fee of the ANDA dossier, rising manufacturing costs, rising cost of the raw material, pricing pressures (DPCO) and the Pharma MNC’s trying to buy out existing units in Indian and trying to increase their geographic presence.

Even semi regulated markets are in the process of enforcing stricter regulations for exports of medicines from India. Continue reading

“At first blush, it might seem like the wave of patent expirations could be enough to cut the entire health care sector off at the knees. But while the looming wave of expirations will affect the entire pharmaceutical chain — from drug makers to distributors to wholesalers and even some retail drug stores — the sector as a whole is actually being pulled down by a combination of issues including health care reform in the U.S. and pricing pressures in Europe. As those issues are resolved, the outlook for the sector could improve.

Meanwhile, as big pharmaceutical companies lose their patent protections, many are starting to adjust through consolidation and diversification.

It has been described as both a cliff and a wave, but whatever you call the unprecedented number of pharmaceutical drugs that will lose their patent protection in the next few years, it sets the stage for a host of investment opportunities — and potential pitfalls.

Between 2011 and 2013 more than $90 billion worth of annual pharmaceutical sales will lose their patent protection. Eli Lilly & Co. (LLY), for example, will lose Zyprexa next year. In 2012, Bristol-Myers Squibb Co. (BMY) will lose Plavix, Pfizer Inc. (PFE) will lose Lipitor and Merck & Co. Inc. (MRK) will lose Singular.

To be sure, drug patents expire all the time. But when large blocks of popular brand-name drugs move toward expiration all at once, it opens the doors for generic drug makers and causes investors to readjust their thinking about the whole pharmaceutical sector.”

“It started with Canada a few months ago. The Ontarian legislature took the bold step of cutting down reimbursement prices of all major generic drugs by 25%.. This caused a major uproar in all corners particularly consumers and pharmacies. The Consumers would be facing a major impact of the reduction in reimbursement as they would no longer be able to afford the medicines they were able to buy based on their stipulated health insurance policies.
Further the pharmacies would be compelled to stock only those medicines which are priced lesser for a particular disease and that would be coupled without or min incentive an incentive on the stocking price.
Pharma majors have been compelled to reduce prices of their products by the governments if they want to sell in their countries. A recent example of this is Greece. Novo Nordisk refuses to sell its 17 of its important products at lower prices following the recent declaration by the Greece government to cut drug prices by 25%.
The price cuts form part of the Greek government’s attempts to deal with the nation’s massive debt crisis, imposed in return for a bail-out package worth 100 billion euros pledged to Greece by the International Monetary Fund (IMF) and the eurozone member states last month. Novo Nordisk was first to reject the price cuts, stating that it will withdraw supplies of 17 of its most advanced products on a temporary basis. The firm has refused to implement the price cuts on its modern insulin products and those administered through pen injection systems and, as a result, wholesalers have stopped ordering them; it will however continue supplying human insulin products in Greece at the new lower prices. Then on May 30, Leo Pharma reported that it had issued a Notification Letter of Discontinuation concerning the potential withdrawal of 18 of the company’s 29 products currently sold on the Greek market, although it stressed that it would ensure alternative treatment options for Greek patients are provided by its remaining products. ”