Pharmaceutical Pricing and Reimbursement in India

Published by: Decision Resources

Published: Sep. 25, 2009 - 38 Pages

Table of Contents

Executive Summary

Strategic Considerations

Stakeholder Implications

Overview

Demographic Trends

Demographics by Age

Demographics by Geographic Distribution

Organization and Funding of Healthcare

Overview

Access to Healthcare

Public Healthcare Infrastructure

Corporate Hospital Chains

Health Insurance

Voluntary Individual Health Insurance

Community-Based or Nongovernmental-Organization-Sponsored Health Insurance

Employer-Sponsored Coverage

Government-Sponsored Insurance Programs

Out-of-Pocket Expenditures

Pharmaceutical Market Trends

Historical Development of the Indian Pharmaceutical Market

Recent Market Trends

Intellectual Property Rights

Regulation of the Indian Pharmaceutical Market

Pharmaceutical Pricing

Historical Price Controls

Current Price Control System

Scheduled Medicines

Nonscheduled Medicines

Price Adjustments

Penalties for Overcharging for Drugs

International Price Comparison

Multinational Companies’ Pricing Strategies in India

Distribution Challenges

Measures to Promote Greater Use of Inexpensive Generics

Outlook and Implications for the Pharmaceutical Industry

Encouraging Commercial Outlook Despite Signifi cant Challenges

Potential Government Reforms

New Price Controls for Patented Drugs

Foreign Models for Price Setting

Expansion of the List of Scheduled Medicines

Monopoly Purchase of Certain Products

Signifi cance for Drug Manufacturers

Opportunities and Threats for Multinationals

Tables

1. Rural, Urban, and Major City Populations (thousands), 2008-2018

2. International Brands Launched in India, January 2005 to April 2009

3. Scheduled Medicines in India

4. Ex-Manufacturer Prices of Select Drugs in India and Other Major Markets as a

Percentage of U.S. Prices, 2008

Figures

1. Population Breakdown by Age and Sex

2. Population Growth, by Age-Group, 2008-2025

3. Urban Versus Rural Population Growth, 2008-2025

4. Number of Prices Fixed or Revised by the National Pharmaceutical Pricing Authority, January 2000 to August 2009

5. Indian Prices of Select International Brands as a Percentage of the Respective U.S. Prices, 2008

6. Indian Prices of Select International Brands and the Most Frequently Prescribed Domestic Generic Equivalents

Abstract

• The Indian population is forecast to grow from its present size of 1.2 billion to 1.7 billion in 2050. How will
the age breakdown of the population evolve over time? How will the balance between India’s urban and rural populations change in the coming years?
• Only a minority of Indians have health insurance. What are the main forms of health insurance? How do
most Indians fund healthcare and medications?
• The Indian government controls the prices of 74 scheduled medicines. Which agents are subject to price
control? How are prices of other drugs regulated? How does the government penalize overcharging for drugs? How do prices in India compare with prices in other markets? What pricing reforms is the Indian government contemplating?

• Demographic trends: population breakdown by age and sex; population breakdown by geographic distribution.
• Organization and funding of healthcare: overview of the Indian healthcare system; access to healthcare; health insurance; out-of-pocket expenditures.
• Pharmaceutical pricing: historical price controls; current price control system; price adjustments;
penalties for overcharging for drugs; international price comparison; multinational companies’ pricing strategies.
• Outlook and implications for the pharmaceutical industry: encouraging commercial outlook;potential government reforms; opportunities and threats for multinationals.

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