Mumbai: Drug prices are expected to increase over the next few years in the country, according to a report prepared by the research agency Ernst & Young.
"Pricing will continue to be the key strategic decision in India, which is one of the few markets, where drug prices are expected to increase over the next few years, unlike in several other developed markets," says an OPPI-& Ernst & Young report on 'India emerging: Pharma's evolving business models'.
The Organisation of Pharmaceutical Producers of India (OPPI), established in 1965, is a premier body of research-based international and large pharma companies in the country.
India not only has lower price points than some Western markets, but also has lower price points as compared to other emerging markets.
While companies have launched differentially priced products here, they are still not available to a large population, said the report, suggesting that an intra-country differential pricing may create a win-win situation, whereby the lower income group population will gain access to new medicines, while for the higher income population, they could launch drugs at higher prices.
Although domestic companies have been able to launch most of patented drugs in the pre-2005 era, the enforcement of the product patent regime has led to fewer on-patent drug launches.
Between 2005 and 2010, only about 21 percent on-patent products were launched, while it was 55 percent between 2000 and 2005.
While a few MNCs have expressed their apprehension over enforcement of the patent regime here, others have successfully launched patented products. This clearly indicates waning of IP risk in the domestic market, the report said.
First Published: Tuesday, September 27, 2011, 22:33