Prior Research Results on DPCO 2013

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Prior Research Results on DPCO 2013

Overview

The impact of DPCO 2013 on the pharmaceutical market, pricing, sales volumes, and industry response has been a subject of both formal academic studies and informal analyses. A summary of the results and findings from prior research on the Drug Price Control Order (DPCO) 2013 is presented below. While these studies provide suggestive evidence, we systematically examine the impact of the policy on all regulated oral solid drugs and unpack the mechanism using detailing data from a large pharmaceutical firm in the country and prescription data from physicians without formal medical degrees.

Prior Research Findings on DPCO 2013

Study Details of the Study Findings Link View Details
Dean (2019) Effects of pharmaceutical price controls on sales and market dynamics Decrease in sales noted, especially affecting small, local generic manufacturers; poor and rural consumers faced adverse effects
Bhaskarabhatla et al. (2021) Analyzed firms’ response by shifting demand to unregulated submarkets, specifically for acetaminophen Identified repositioning and demand shifting to unregulated submarkets
Selvaraj et al. (2022) Impact on sales of antibiotics under DPCO 2013 Observed a sales reduction of 3.7% post-regulation
Sharma et al. (2022) Examined the impact on anticancer drugs under regulation Found a 27.3% average reduction immediately post-regulation, with a 0.7% monthly reduction thereafter

Report Details of the Study Findings Link View Details
Pradhan (2013) Commentary on firms’ strategic shifts post-DPCO 2013 Suggested a focus shift to unregulated drugs by firms
Wan (2013) Impact assessment of DPCO 2013 on the market value Predicted a $290 million annual erosion in market value, a 2.2% drop overall
Mookim and Khanna (2015) Compared growth rates for regulated vs. unregulated molecules Found significantly lower growth rates for regulated molecules post-July 2013
FRPT-Research (2015) Tracked the launch of new drugs pre and post DPCO 2013 Decline in new drug launches from 270 in 2008 to 56 in 2014
Majumder and Abhinash (2019) Data analysis on the impact on sales for small (Jubilant) vs. large (Novartis) pharma firms Jubilant increased sales by 20%, while Novartis saw a decline of 40%

References

Bhaskarabhatla Ajay, Priyatam Anurag, Chirantan Chatterjee, and Enrico Pennings (2021), “How Does Regulation Impact Strategic Repositioning by Firms Across Submarkets? Evidence from the Indian Pharmaceutical Industry”, Strategy Science, 6 (3), 209-227.

Dean, Emma (2019), “Who Benefits from Pharmaceutical Price Controls? Evidence from India”, SSRN Working Paper 4509963.

FRPT-Research (2015), “New Drug Launches in India Dips as Price Control List Expands”, FRPT- Chemical Snapshot, 6-7.

Majumder, Avishek, and Abhinash (2019), “Impact of the Drug Price Control Order on the Pharma Industry”, Project Guru, (accessed on 17 May 2023), https://www.projectguru.in/impact-of-the-drug-price-control-order-on-the-pharma-industry/

Mookim, Amit, and K. Khanna K (2015), “Assessing the Impact of Price Control Measures on Access to Medicines in India”, IMS Consulting Group.

Pradhan, Raj, (2013), “Medicine Prices: DPCO Loopholes will Deny Cheaper Essential Drugs”, (accessed on 25 April 2023), https://www.moneylife.in/article/ medicine-prices-dpco-loopholes-will-deny-cheaper-essential-drugspart2/35249.html

Selvaraj, Sakthivel, Habib H. Farooqui, Aashna Mehta, and Manu R. Mathur (2022), “Evaluating the Impact of Price Regulation (Drug Price Control Order 2013) on Antibiotic Sales in India: A Quasi-experimental Analysis, 2008–2018”, Journal of Pharmaceutical Policy and Practice, 15 (68).

Sharma, Bhavna, Aashna Mehta, Habib H. Farooqui, Himanshu Negandhi, and Sakthivel Selvaraj (2022), “Impact of the Drug Prices Control Order (2013) on the Utilization of Anticancer Medicines in India: An Interrupted Time-Series Analysis”, Cureus, 14 (6).

Wan, Jane (2013), “Report from: India”, Pharmaceutical Technology, 37 (8), 32-34.