E-DRUG: Drug Pricing Policy

E-drug: Drug Pricing Policy
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Dear Colleagues,

Many of you would be aware that India has recently changed its Patent laws
and has allowed Exclusive Marketing Rights for new drugs. This is part of
the Gatt provisions that require countries like India to change to a Product
Patent regime by 2005. In India consumer groups had raised concerns that
changes in the Patent Act would lead to rise in drug prices. At that time
the Govt. had claimed that existing Drug Price Control mechanisms would
continue to be enforced and would help stabilise prices.

Strangely, within two months of the amendment of the Patent Act the Indian
Govt. has initiated an excercise to review existing drug control mechanisms,
with a view to reducing the span of price control. Already, only 30% of
drugs in India are under Price Control (down from 70% before 1995). The
Govt. says that it is going to study mechanisms in other countries to help
it formulate its new policies.

I would like to receive information regarding drug price control mechanisms
in other countries to help us formulate our position. To provide an
indication of how drug prices compare in India to those in other countries I
am giving below a small select price comparison. I have not included drugs
which are still Patent protected or have come off Patents recently, as we
know that Indian prices are much lower than global prices (due to our old
Patent Act that did not allow Product Patents for Pharmaceuticals).

Drug Dose BC BNF MIMS

Amoxycillin 250 mg 1.75 2.59 2.89
Ampicillin 250 mg 1.75 2.42 3.18
Erythromycin 250 mg 1.25 2.87 4.17
Cephalexin 250 mg 3.00 7.74 4.46
Doxycycline 100 mg -- 20.72 2.90
Co-trimoxazole 480 mg 1.75 2.14 0.90
Propanolol 40 mg 1.25 0.25 1.39
Atenolol 50 mg -- 2.65 1.29
Nifedipine 10 mg 2.50 6.30 0.81
Verapramil 40 mg -- 0.63 0.49
Frusemide 40 mg 0.75 0.77 0.33
Salbutamol 4 mg -- 0.95 0.52
Prednisolone 10 mg 1.50 1.09 1.32
Dexamethasone 0.5 mg 6.00 2.24 0.26
Metronidazole 400 mg 1.60 3.40 0.66
Tinidazole 500 mg -- 40.25 1.65
Mebendazole 100 mg -- 17.85 1.57
Domperidone 10 mg 4.75 5.75 1.99
Metclorpropamide 10 mg 0.75 1.61 0.58
Rifampicin 300 mg 15.75 24.68 2.45
Ethambutol 800 mg 13.50 22.61 2.92
INH 300 mg 1.25 1.40 0.57
Inj.Streptomycin 1 gm 315.50 393.40 8.94
Paracetamol 500 mg 1.25 0.32 0.49
Ibuprofen 400 mg 0.75 1.02 0.68
Diclofenac 50 mg 6.25 5.85 0.65
Glibenclamide 5 mg -- 1.61 0.48
Diazepam 5 mg 0.13 0.25 0.92
Alprazolam 0.25 mg -- 3.21 0.75
Haloperidol 0.25 mg 0.13 1.60 0.55
Phenobarbitone 30 mg 0.25 0.28 0.50
Phenytoin.Sod 100 mg 1.50 1.96 0.85
Carbamazepine 200 mg 1.75 3.75 1.12

BC - British Columbia Children's Hospital Formulary
BNF - British National Formulary, No.35, March 1998
MIMS - MIMS India, March 1998

(Single units - tab./Cap./vial - has been taken for all drugs. Prices are in
India Rupees (Rs.). Rough conversion rate is : 1 U.S.dollar = Rs.42.50, 1
Canadian Dollar = Rs.25.00, 1 British Pound = Rs.70.00)

I would be grateful for some prompt replies (even if brief).

Thanks.

Dr.Amit Sen Gupta
National Campaign Committee for Drug Policy
New Delhi, India
ctddsf@vsnl.com

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