Drug prices in India are 10 to 12 per cent of the prices in the United States – the world’s biggest pharma market, a study by consultancy firm McKinsey has said.
In some cases, the drug prices in India are even lower than its neighbours – Sri Lanka, Pakistan and Bangladesh, it said.
The report may come as good news for the pharmaceutical industry, which is at loggerheads with the Chemical and Fertiliser Ministry, which is claiming that drugs in the country are overpriced.
“Even in the case of drugs under price control, prices are often below the ceiling price mandated by the Drug Price Control Order,” the study said.
The McKinsey study stated that drug prices in India have fallen over the last few years. “Over the past five years, prices have fallen by 0.5 per to 1 per cent every year,” it said.
General drug price levels in India are 2 to 10 per cent of those in the US. For “specialty products” recommended by specialist physicians, price levels in India are in the range of 8 to 35 per cent of prices in the US, it said.
For “super-specialty products”, price range in India is 25 to 50 per cent of that in the US.