The new National Pharmaceutical Pricing Policy has come up with a new set of rules. As per this policy, which is due to be implemented, would take cover of 348 drugs instead of existing 72 drugs. In addition to this, the pricing would be based on Simple Average Pricing instead of Cost based pricing. This is believed to benefit the consumers but the pharma companies are going to take a hit on their profits. It is estimated that the profitability of pharma companies would come down by around 27%. Currently, pharma companies have an approximate profit margin of 12% which would come down to 9%. Good or Bad? Share your views with justifications!
