By : Competition Commission of India

What does it say:

• Creation of a National Digital Drugs Databank and strict enforcement of drug quality standards to boost price competition among generic drugs in India
• Market for generic drugs is driven by brand competition instead of price competition despite such drugs being functionally and chemically identical
• Generic drugs are chemically identical to drugs that once had patent protection
• Brand differentiation in terms of a perception of different levels of quality and trade margins offered to incentivise chemists were key drivers of brand competition in India’s
• Markets for generics manufacturers that concentrate their efforts on the creation of brand image and brand loyalty have been able to command a price premium on chemically identical drugs
• Patients are unaware of the attributes and substitutes for drugs simply purchase medications prescribed by physicians and dispensed by chemists
• Highlighted that the perception of difference in the quality of drugs by different manufacturers also feeds into brand differentiation
• Effective price competition in generics can benefit consumers and improve access to affordable healthcare
• Enforcement and interpretation of quality regulations was not uniform across states and different regulatory and testing capacities had led to different quality standards being followed
• A mechanism may be devised under the aegis of the CDSCO (Central Drugs Standard Control Organisation) to create awareness on quality issues, build capacity, and harmonise training and practices across the country with a view to ensure uniform and consistent application of quality standards
• National Digital Drugs Databank be created and made available to regulators, industry, physicians and consumers to address information asymmetry in the sector
• Rising market share of online pharmacies and concerns around the concentration of patient data raised by brick and mortar pharmacies