Drug Price Control Order Act (DPCO Act) - The DPCO Act comes under the Essential Commodities Act (ECA). it helps the government in pricing control in the case of drugs. Under Drug Price Control Order Act, the government set a ceiling price for all the necessary medicines. To make a balance in-between the consumer's and manufacturers' interests, the Ministry of Chemicals and Fertilizers insisted Drugs Amendment Order in Jan 2019.
The main aim of this DPCO Act is to make sure affordability of essential medicines in the country. There are two authorities involved in the making and improvising of the Act. The Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers. Also, the first time this act came into existence was in the year 2013 under section 3 of the Essential Commodities Act. Moreover, The National Pharmaceutical Pricing Authority (NPPA) is responsible for the implementation of the Drug price control order act. This authority is attached to both the Department of Pharmaceuticals and the Ministry of Chemicals & Fertilizers.
The increasing demand for pharma products is creating a competitive environment within the pharma sector. To break the monopoly, especially in the case of basic medicines, the government interfere to save the interest of the consumers and ensure their basic right. In this blog, you will get full information about the Drug Price Control Order Act (DPCO Act)
Now, let’s take a look into the applicability of this act, such as -
In addition, the pricing decided under the DPCO Act is based on the taking average of the medicines being provided by the different companies and considering two things - market share, and moving annual turnover.
The concept of Essential Medicine started in the year 1977 by the World Health Organization. There is a list of medicines that are there necessary for human health care. For considering a medicine under the essential medicine category, there are some points to be considered -
Following are the features of an essential medicine -
Drug License are of two types - Retail Drug and Wholesale Drug. The Retail Drug license is issued to the people who want to run a chemist shop. On the other hand, a Wholesale drug license is issued to the people who want to sell drugs at the wholesale level. Following is the list of drug licenses related to the pharma business in India -
Medical Representative is the bridge between pharma sellers and companies. These create awareness, promotions, and demand for existing or new products among the retailers or stockiest. The company hires them as their representative to fix meeting with suitable clients that can be a doctor, pharmacist, or other healthcare professionals. Also, the job is based on targets and need a good set of skills consisting of communication, problem-solving, selling, and time management.
Hope you get all the information regarding Drug Price Control Order Act (DPCO). This Act ensures the availability of pharma products at an affordable range and sufficient quantity in the market. This helps give the basic rights to healthcare treatment and diminish money-based discrimination. Lastly, for more information, feel free to reach out to Syntonix Biofarm!