Incentivising Innovation: No Price Controls On New Drugs For First Five YearsRepresentative image (Prasad Gori/Hindustan Times via Getty Images)

On Thursday (4 January), the government removed price restrictions on new and innovative drugs developed by foreign pharmaceutical companies for the first five years, reports Mint.

The Union Ministry of Chemicals and Fertilisers has amended the Drugs Price Control Order (DPCO) to allow producers of new drugs to set prices without government interference.

This move will allow Indians to access innovative medical treatments that are only available in foreign countries. Also, orphan drugs, which are used to treat rare medical conditions, can now be sold in the country.

This freedom will apply to medicines patented under the Indian Patent Act, 1970. The period of five years will commence from the date of first commercial marketing undertaken by the manufacturer in the country.

DPCO

The Union government issued this Order under section 3 of the Essential Commodities Act, 1955, to provide essential and life-saving medicines at a reasonable price to the general public. The list of drugs mentioned in the Schedule I of the Order is amended by the government from time to time.

Also Read: Why Indian Pharma Sector Should Move From Generic To Innovation

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