Drug Price Control Order (DPCO)
Pharmaceutical Marketing
Management
1. Introduction
The Drug Price Control Order (DPCO) is a legal framework under the Essential Commodities
Act, 1955 to regulate prices of essential medicines in India. It ensures affordability and
accessibility of drugs to the general public. The National Pharmaceutical Pricing Authority
(NPPA) is responsible for implementation.
2. Objectives
- Ensure affordability of medicines
- Prevent overpricing
- Promote access to essential drugs
- Balance public health and industry growth
3. Evolution of DPCO
1970: First DPCO introduced
1979: Expanded control
1987: Liberalization phase
1995: Reduced drug list
2013: Market-based pricing introduced
4. Key Features of DPCO 2013
- Based on NLEM
- Ceiling price fixation
- Annual WPI revision
- Strict compliance rules
5. Role of NPPA
- Price fixation
- Monitoring availability
- Ensuring compliance
- Recovering overcharged amounts
6. Pricing Mechanism
Ceiling price is calculated as the average price of brands with more than 1% market share.
7. Impact on Pharma Marketing
- Promotes ethical marketing
- Reduces profit margins
- Encourages generic drugs
8. Advantages and Limitations
Advantages:
- Affordable medicines
- Transparency
Limitations:
- Limited coverage
- Reduced innovation incentives
9. Conclusion
DPCO plays a crucial role in ensuring affordable healthcare while balancing industry
growth.
10. References (Vancouver Style)
1. Government of India. Drug Price Control Order (DPCO), 2013.
2. NPPA. Pharmaceutical Pricing Guidelines. 2022.
3. NLEM 2022. Ministry of Health.
4. Singh KK. Pharmaceutical Marketing Management.
5. Jain NK. Pharmaceutical Jurisprudence.
6. WHO. Pricing Policies. 2020.