The government is believed to have finalized the National Pharmaceutical Pricing Policy 2012, which is aimed at placing a cap on the prices of essential drugs in the country.

There are indications that the finalized policy is likely to be notified in the coming few days. The policy, will place a limit on prices of 652 commonly-used popular medicines, in the country. The medicines cover treatment areas including anti-infectives (cetrizine), cardiac (aten), gastro-intestinal medicines (ocid) , pain-killers (paracetamol) and anti-diabetic drugs (insulin).

According to estimates, if the policy is implemented, the prices of drugs are likely to be reduced by 11 per cent in the country. The is the first time that the government will impose a price limit even on drugs that are imported from abroad.

It is also believed that the government will allow an exemption to original research products that have a partner in India in order to promote research and development activities in the country. The policy is expected to cover 30% of the over Rs 67,000 crore domestic pharmaceutical mark and will use simple average method of all drugs with more than one percent market share under a particular therapeutic area.