‘’DPCO 2013 will equally affect domestic as well multinational pharma companies’’

The DPCO 2013 aims to put in place a regulatory framework for pricing of drugs so as to ensure availability of ‘essential medicines’ at reasonable prices to end consumers. Based on their extensive databases, deep insights and knowledge of the pharma market, an expert team from IMS Health has deep dived into this issue and found:

Impact at company level

Both local companies and MNCs stand to lose almost equal quantum of sales on account of DPCO 2013 implementation. However as expected, MNCs will be hit relatively harder as compared to local companies on account of their premium priced portfolio. While at an overall level, local companies would lose ~1.6 per cent of their current revenue, MNCs are likely to see ~3.7 per cent erosion in their sales.

Impact at therapy level

The impact of DPCO 2013 implementation on acute and chronic therapies is almost identical. Both segments are likely to witness a drop in annual revenue of ~2.1 to 2.2 per cent. However, patients on chronic therapies who are currently using those packs listed under NLEM 2011 and which are currently above ceiling price, will benefit more in the long term.

– Amit Backliwal, Managing Director, IMS Health — South Asia