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Regulating Pharmaceutical Prices in India

Policy Design, Implementation and Compliance

  • Ajay Bhaskarabhatla
Book

Part of the India Studies in Business and Economics book series (ISBE)

Table of contents

  1. Front Matter
    Pages i-ix
  2. Ajay Bhaskarabhatla
    Pages 1-7
  3. Historical Context and the Motivation for Regulation

    1. Front Matter
      Pages 9-9
    2. Ajay Bhaskarabhatla
      Pages 11-31
    3. Ajay Bhaskarabhatla
      Pages 33-67
  4. The Design of the 2013 DPCO Regulation

    1. Front Matter
      Pages 69-69
  5. The Impact of the 2013 DPCO

    1. Front Matter
      Pages 117-117
    2. Ajay Bhaskarabhatla
      Pages 119-157
  6. Enforcement and Compliance

    1. Front Matter
      Pages 195-195
    2. Ajay Bhaskarabhatla
      Pages 229-234
  7. Back Matter
    Pages 235-306

About this book

Introduction

This book presents an extensive study on the effectiveness of recent regulations on pharmaceutical prices in India, exploring the weaknesses in the design and implementation of pharmaceutical price controls and investigating what can be done to fix the broken system.

In addition, it examines the extent to which essential medicines are actually made affordable by price controls. The book argues that companies make the pharmaceutical price control regime largely ineffective by coordinating to increase pre-regulation prices; by diversifying horizontally away from the regulated markets and increasing prices in the unregulated markets; by manipulating trade margins; and by refusing to comply with the regulation because the penalties remains negligible.

The book draws on extensive empirical research involving India’s 2013 Drug Price Control Order and widely-used medicines such as paracetamol and metformin to illustrate how firms have weakened regulation. It argues that the regulatory regime can be strengthened by using systematic analysis of product- and region-level data in the Indian pharmaceutical industry, and by screening for the strategies that firms currently employ to circumvent regulation. In closing, it discusses recent efforts to strengthen the implementation of price controls in India and expanding the scope of price controls to medical devices.



Keywords

Company Law Drug price Control FDI Generic Drugs Indian Bureaucracy Medicine Practice Pharmaceutical Companies Pharmaceuticals Policy Regulatory Mechanism

Authors and affiliations

  • Ajay Bhaskarabhatla
    • 1
  1. 1.Erasmus School of EconomicsErasmus University RotterdamRotterdamThe Netherlands

Bibliographic information

Industry Sectors
Pharma
Biotechnology
Finance, Business & Banking
Engineering