Government can regulate the prices of drugs/medicines as per t | ECONOMY by VIVEK SINGH

Government can regulate the prices of drugs/medicines as per the following three Acts:

1) Essential Commodities Act 1955: By using this Act, Govt. has issued the Drugs (Price Control) Order and capped the prices of around 800 drugs. National Pharmaceuticals Pricing Authority (NPPA) is responsible for fixing and revising the prices (as per formula) of pharmaceutical products and the enforcement of DPCO. NPPA is under ministry of chemicals and fertilizers

2) The Patent Act 1970:

(a) If a manufacturer himself approaches the government that he can produce the generic versions (through reverse engineering) at a very cheap price, but only after the negotiation between patent owner and manufacturer has failed for voluntary license. [Section 84 of Patent Act 1970]

b) In case of National emergency (pandemic like Covid-19) or extreme urgency, Govt. can give notification that it will give compulsory licenses to any manufacturer who wants to manufacture generic versions of the drug with such terms and conditions. [Section 92 of Patent Act 1970]

But in both the cases the manufacturer has to pay the royalty as decided by the Govt.

(c) As per Section 100 also Govt. can authorize anyone to produce the drugs and waive of the royalty.

3) The Epidemic Diseases Act, 1897: Under this act, the broad undefined powers can be used by State Governments to regulate the prices