NPPA to embark study on Impact analysis of price regulation of essential drugs

Mumbai : The National Pharmaceutical Pricing Authority (NPPA) will soon embark on a research study on 'Impact analysis of price regulation in India in the context of affordability, accessibility and availability of essential medicines since 1995'.

The scope of the study will include impact assessment of price control since the implementation of DPCO, 1995 to be studied keeping in mind the overall objectives of Department of Pharmaceuticals (DoP) and the NPPA, that is ensuring the affordability, the accessibility and the availability of essential medicines (August 1996 to August 2016). The study shall also deeply examine the reasons for a particular 'impact' on affordability, the accessibility and the availability and also suggest remedial measures to make the price control more effective. The study should also specifically assess the negative impact of price control, if any, on the growth of Indian pharma sector during the reference period and suggest reforms in the existing policy and regulatory framework.

The data base used for the study is going to be primarily the PharmaTrac data which requires to be supplemented by other essential primary, secondary or tertiary data as required and collected by the agency. The study should clearly demonstrate with adequate empirical evidence the impact of price control in India during both the phases i.e. the cost based pricing system prior to 2012 and after that within the overall reference period of the decade (August 1996 to August 2016).

The study should also take into account earlier studies in Indian context on the subject, if any, and critically examine the methodology, assumptions and inferences in the previous studies and independently establish the relevance of nay departure taken up during the proposed study.

The study should also take into account the price regulation system and impact studies done in other countries and try to assess the Indian system of price control vis-a-vis the price regulation systems in other countries. The study will also critically examine the existing alternate methods of ensuring drug affordability in the country like government procurement and distribution, the existing insurance support and its impact, etc.

The study will be completed within a period of four months from the date of issue of work order. The NPPA has now invited expression of interest (EOI) from experience agencies for conducting the research study.