New Indian moves on pharma pricing :: IndiaNivesh

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http://www.thepharmaletter.com/article/new-indian-moves-on-pharma-pricing
Early January 2015, the Indian government is to come out with a new list of life
saving drugs whose prices would be controlled. A core committee, under the Director
General of the Indian Council for Medical Research has been established to suggest
a new list of medicines that can be brought under price control, reports The Pharma
Letter’s India correspondent. (for details, pls click the link above)
Our view: The measures to control prices of pharmaceutical products have become
aggressive in past couple of years. Post pricing policy for 348 drugs in September
2012, NPPA came up with 108 additional drugs to be brought under price control in
July 2014 and then price control for 52 drugs in December 2014. The article above
highlights NPPA working on additional list of drugs to be brought under price control.
Also, government intends to set up an integrated pharmaceutical database system
and price monitoring resource unit for drugs in each state. We believe that such
measures by NPPA would motivate pharmaceutical companies to get innovative
products to market to maintain higher profitability. Secondly, proportion of domestic
formulation sales in total sales for most of the pharmaceutical companies have
been reducing because of higher exposure to regulated markets and other emerging
market.
We remain bullish on the pharma sector as long term structural drivers are intact
and indian pharma companies well in position to monetize the opportunities.