Pricing Tensions Escalate In India; Novartis Under A Cloud
Charges of price collusion pertaining to Novartis’ Galvus are the latest in a string of allegations that have rocked the pharmaceutical industry in India over the recent past, though the company claims it has not flouted the law. Industry is also under fire for ‘suspected’ deviations from mandated price caps for over 600 medicines – a charge seen widening the trust deficit.
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Eris Lifesciences has acquired a Novartis trademark for vildagliptin, a DPP-4 inhibitor that has been the subject of a torrent of alleged infringement-related legal action in India. Pricing for the acquired brand will be interesting to watch from now on as a patent on vildagliptin is set to expire soon.
South Korea has confirmed administrative measures including a fine against Novartis Korea for illegal rebate payments following official probes last year.
The Indian government has fixed the maximum price that can be charged for coronary stents for a year in an attempt to make treatments more affordable. US medtech companies say, however, that a singular focus on pricing is misguided and that steps should be taken to fix “inefficiencies” in the health-care ecosystem.