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Drug Price Control Order Act (DPCO Act)

Drug Price Control Order Act (DPCO Act) -In India, drug costs are regulated and generally known as Drug Price Control Order (DPCO) under the Indian Essential Commodities Act 1955. It is represented by the National Pharmaceutical Pricing Policy (NPPP) and is a national list for appropriately needed drugs. DPCO is valuable in controlling the cost of life-saving drugs which are fundamental in the flow of medical services and diseases. Each of the basic medicines is covered under DPCO and the maximum price tag is planned.

The cost of the drug cannot exceed the breaking point specified by the DPCO. We influence the pharmaceutical sector. This blog additionally adds a brief history of the DPCO, its essence, goals, and the effects of the DPCO on similar unrecognized exchanges. We have attempted to examine the implications of drug cost control and its suggestions on business in general. We have also tried to look at the future prospects for the pharmaceutical business.

Why does the Drug Price Control Order apply?

Some pharma companies started expanding the cost of their commodities to get excessive ROI and this was generally affecting the expected customer. When it comes to the government, drug companies are raising the cost of their best-selling goods that should be fair to the customers. So the public authority came into real life and presented a demonstration called the Drug Price Control Order or DPCO which says that the cost of the original drug should be in charge.

Why is it important?

India is a marked generic market, and this means experts endorse every drug brand that patients consume. Despite the accessibility of suitable brands, experts generally favor leading brands, which are priced with some inherent cost. Since patients are not aware of less expensive alternatives, they turn to less expensive counterparts of expensive drug brands recommended by their doctor in some cases. This decision leaves little option for the patients, making it fundamental for the state to intervene and provide basic medicines at reasonable prices to the poor.

Significance of Development of Drug Price Control Order

  • The DPCO has facilitated the survival of the individuals of the country by directing the cost of medicines and has reached all the sections present in the country.
  • The government has found many ways to operate in the controlled area of the drug business and produce to not exceed the anticipated cost. Various scheduled medicines or schedules are prepared by the Government of India from time to time to control the cost.
  • As indicated by the World Health Organisation, drugs are the main cycle related to monetary effects. Medicines address 15–30% of wellbeing spending in conditional economies and 25–66% in emerging countries.
  • The pre-cost of the drugs was fixed by the manufacturers on the basis of their combined cost. However, after the implementation of the DPCO, the cost is decided by the government. In 1955 the DPCO was profiting from manufacturing as the cost of drugs was heavily influenced by the command make. DPCO 2013 advances public innovation by surrendering patents for 5 years under the Indian Patent Act 1970 and supports new drugs in India.
  • The cost of drugs is fixed by the pharmaceutical businesses for the general system of government and government assistance to the public.


Because of the DPCO, tensions with respect to cost assurance extend to multinational companies that help domestic companies conduct research. The cost of a large number of patent marked drugs of multinational companies is constrained by the DPCO. The Drug Price Control Order is a campaign given by the Government of India to take care of the strength of the individuals and benefit the manufacturers of bulk drugs. It has controlled and covered practically all angles in the field of medicine. The Public Pharmaceutical Pricing Authority is playing an extremely important role under this order.