"We welcome this move as it ends the uncertainty on the pricing policy that has been stuck for so many years.
"The shift to a market-based price control model is commendable as it puts an end to the arbitrary pricing regime.
"The consumer stands to benefit with lowered prices of medicines," Dr Reddy's Vice-Chairman and MD Satish Reddy said here.
Last week, the Department of Pharmaceuticals had notified the Drugs (Prices Control) Order 2013 under which prices of 348 medicines in the National List of Essential Medicines have been brought under price control, thus replacing an earlier order of 1995 that regulated prices of only 74 bulk drugs.
The DPCO proposes that retail price of 348 drugs will be fixed at the simple average price of brands that have more than 1 per cent market share.
However, the government will have to strike a balance between improving affordability of medicines and the growth of Indian pharmaceutical industry, which is heavily dependent on investments into R&D,
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