ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A

Prices of New Pharmaceuticals in India: A Cross Section Study

There is an ongoing debate about the rationality of price controls in a regime where drugs can be manufactured through alternative processes as was the case in India before 2005. In a regime of only process patents, competition was expected to bring prices down. However, even when there was an absence of intermolecular competition, firms have been involved in intramolecular competition to charge varying levels of prices for the same drug. This study examines the role of inter- as well as intramolecular competition, apart from the extent of therapeutic advantage that a new molecule offers, in the determination of the level and rate of change in drug prices. In a regime where product patents are also recognised and the competitive pressures are going to be limited, the need for price monitoring and control would be greater for therapeutically superior drugs. Also drugs which are predominant in their class for specific indication need to be monitored.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now


(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top