Price Cap On ONCO Drugs Will It Have The Desired Impact?

NPPA’s recent move to cap the price of 42 nonscheduled cancer drugs has evoked mixed reactions from the industry. While some berated it as a hasty decision, others have lauded it and believe that it will be beneficial in the long run

- Akanki Sharma

The price cap on 42 non-scheduled cancerdrugs by the National Pharmaceutical Pricing Authority (NPPA), which was set to be a relief for cancer patients is just a pyrrhic victory, inform experts, as cancer patients still feel the sting of ‘out-of-pocket-expenses.’ Some stakeholders — drug manufacturing firms, hospitals and pharmaceutical associations — believe that the move was implemented in haste and it needs a ‘re’view.

Elaborating on whether the move is beneficial for pharma companies, Kiran Mazumdar Shaw, CMD, Biocon, believes that if such decisions are made in “fits and starts”, though with an intention to fix something, the goal remains largely unfulfilled.

“I think we need to look at all our policies in a holistic way. Just reducing drug prices doesn’t really solve the problem. We have got to look at all the healthcare costs holistically if we really want to build enduring sustainable models,” she adds.

Agreeing with her, Rakesh Pandey, CMD, Bravo Pharmaceuticals, a drug manufacturing and distribution company with sales in India, Central Asia and Eastern European countries, says that this step taken by NPPA is not good in terms of business for the pharma companies which are export-oriented and their target market is India. “This move gains significance in the government’s attempt to provide affordable healthcare. The authority has noted that despite the fact that India is the pharmacy of the world, out-of-pocket expenses on medicines is the largest cause for pushing families beyond the poverty threshold. Pharma companies, on the other hand, can now target the volume-based big markets otherwise it’s not going to benefit them,” he points out.

Export, import and discounts