Government is said to stall plan to cut drug prices as industry balks

  • According to sources, India's plans to reduce drug prices have stalled following pushback from the pharmaceutical industry, reported Friday.

  • The people noted that no progress has been made on the draft policy since it was introduced last summer.

  • One person disclosed that although India's Department of Pharmaceuticals has been ordered to draft a new policy, one is not expected before the government's current term ends in 2019.

  • The draft policy had recommended major changes to improve India's manufacturing standards and enforcement, increased oversight of the drug price regulator and new rules regarding drug marketing.

  • Industry groups including the Indian Pharmaceutical Alliance suggested the recommendations would increase drug prices, lead to job losses and hamper innovation.

  • The decision to shelve the proposal is considered a major win for drugmakers including Abbott and Sun Pharmaceutical.

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