Pharma Policy 2012 and Its Discontents

The National Pharmaceuticals Pricing Policy 2012 has a new method for determining the price ceiling, called a market-based pricing mechanism. This is problematic, to say the least. It can create the illusion of regulating prices without actually doing so, and will have no impact on other members of the same therapeutic class outside the National List of Essential Medicines or on existing fixed dose combinations, rational and irrational. It will reduce the prices of certain top brands, but not close potential escape routes for good. It will also leave a lot of useful life-saving drugs used in tertiary care outside the price control basket.