The current Drug Price Control Order (DPCO), operational since 2013, is based on market prices, not on cost of input prices, like it used to be in the 1990s. One key reason for less effective price control is that only 10 per cent of the market is under control. To make the price control system more effective and limit the market power of leaders, several measures are needed. The first and foremost is to bring back a cost-based price control formula. Partial price control incentives operate in nine-tenths of the market, which, in effect, remains outside price control.

Source: dna January 09, 2019 01:30 UTC