Pricing

Reimbursement
Drugs in INDIA
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 INDIA and their
PHARMACEUTICAL MARKET
 INDIAN PHARMACEUTICAL MARKET

CAGR - Compound Annual Growth

Rate

sales of pharmaceuticals expanded at a CAGR of 17.6 per

$ 33 in 2016
prosperity would improve affordability for generic drugs in
t & improve per capita sales of pharmaceuticals in India

• India has the 2nd largest number of USFDA-approved manufacturing

plants outside the US
• India has 2,633 FDA-approved drug products. India has over 546
USFDA-approved company sites, the highest number outside the US
 INDIAN PHARMACEUTICAL MARKET

• Currently
3rd
volume

1st
generic 13th
provider INDIA
value
(20%)

Export
to 200
countrie
s
 INDIAN PHARMACEUTICAL MARKET

• Potential
The Indian pharma industry, which is expected to
grow over 15 per cent per annum between 2015 and
2020

The government has recently invested US$ 275

million for strengthening the drug regulatory
system in the country

The Government of India plans to set up a US$ 640 million

venture capital fund to boost drug discovery and strengthen
pharmaceutical infrastructure. The ‘Pharma Vision 2020’ by
the government’s Department of Pharmaceuticals aims to
make India a major hub for end-to-end drug discovery.
INDIAN PHARMACEUTICAL MARKET
INDIAN PHARMACEUTICAL MARKET

While the Central Government

is limited to family welfare and
disease control programs, the
state governments are
responsible for primary and
secondary medical care, with
a limited role in specialty care.
Looking at the healthcare
indicators and the growing
prevalence of non-
communicable lifestyle related
diseases, both the
government and private
sector realize the need to
meet this basic demand.
Today, the private sector
provides 80 percent of the
healthcare service.
The Indian pharmaceuticals market
• 13rd largest in terms of value
• 3rd largest in terms of volume
PRICING OF DRUGS IN INDIA
 WHY???
 PRICING OF DRUGS IN INDIA

The low manufacturing cost in India

• India’s cost of production is
nearly 33 per cent lower
than that of the US
• Labour costs are 50–55 per
cent cheaper than in
Western countries. The cost
of setting up a production
plant in India is 40 per cent
lower than in Western
countries
PRICING OF DRUGS IN INDIA
Established in August 29, 1997
Responsible for
•Price of medicines
NATIONAL
The implementation theare controlled
of PHARMACEUTICAL
National Pharmaceutical Pricing
Policy 2012
Price maximumPRICING
for the essential
AUTHORITY medicines
• The drugs prices control order (DPCO), 2013
are set by the Indian government using DPCO
Purpose
• Safeguard the interest of producers and consumers
• Ensuring the sufficient availability lifesaving drugs at
affordable prices
National Pharmaceutical
Pricing Authority (NPPA)
 National Pharmaceutical
Pricing Authority (NPPA)

Ceiling price fixed: 509 medicines

National Pharmaceutical
Pricing Authority (NPPA)
 National Pharmaceutical
Pricing Authority (NPPA)

DPCO – Drugs Prices Control Order

Reduced the prices of some important life-saving
drugs for disease conditions such as cancer,
HIV/AIDS, tuberculosis, cardiovascular diseases,
diabetes, etc.
Bring hopes to thousands of poor and needly ones
who unfortunally are usually deprived from the
basic health care
 1970s

PHARMACEUTICAL PATENT LAW

IN INDIA
Process Product
patents patents

7 years
 PHARMACEUTICAL PATENT LAW
IN INDIA

2005

Process Product
patents patents

20 years
PHARMACEUTICAL PATENT LAW
IN INDIA
When?
• The patent holder does not make the drug
available to Indian patients
• The cost
COMPULSORY
to Indian patientsLICENSING
is too high
• Export to supply drugs to poor countries to meet
their acute public health problems
COMPULSORY LICENSING
Drugs reimbursement ???

DRUGS REIMBURSEMENT

A drug reimbursement denotes a situation where

either a drug company is paid by a third party for all or
part of a prescription, or where a third party repays the
consumer a portion or all of the prescription's price.
Various insurance companies may handle the process
in different ways, and in some cases it may depend on
the drug's manufacturer. A drug reimbursement is
often a benefit of a medical insurance plan, though not
all plans offer prescription drug benefits.
 DRUGS REIMBURSEMENT

Methods
• In cases where the drug manufacturer is reimbursed, the consumer is
responsible for doing very little other than going to the location and
picking up the medicine. Depending on the plan, the consumer may
need to offer some money toward the cost of the prescription known
as a co-payment. The pharmacy then handles the rest of the
transaction by turning in a claim to the insurance company noting the
drug of choice, the prescription, date filled, and other relevant
information. This may be done either in paper form or via electronic
network.
• For drug reimbursement plans that rely on the patient to handle the
claim, the patient generally must pay the entire cost of the prescription
up front. This can create at least a temporary hardship for the patient
until the money is reimbursed. Often, this may be a method insurance
companies choose to encourage a patient to take a generic medication,
which will create less temporary out-of-pocket expense for the patient
and the insurance company. The turnaround for the drug
reimbursement can vary with each company and the amount of claims
being processed.
DRUGS REIMBURSEMENT
DRUGS REIMBURSEMENT
 Key point

• Ấn Độ là thị trường dược phẩm rất sôi

động.
• Ấn Độ có nền công nghiệp dược rất phát
triển, đặc biệt là thuốc generic.
• Luật bảo hộ bản quyền bị xem nhẹ.
• Chính sách áp đặt giá thuốc tại Ấn Độ.
• Nền y tế phụ thuộc nhiều vào chi trả tư.
• Phần lớn dân số không sử dụng bảo hiểm y
tế.
 THANK YOU
FOR YOUR ATTENTION