Drug Price Control Order Act (DPCO Act)

March 31, 2022 by fortune labs

Drug Price Control Order Act (DPCO Act) – Well, The Drug Control Order (DPCO) is an order that the government issues under the Essentials Act which allows it to regulate the prices of certain essential drugs and their composition. This regulatory order was introduced back in the 1970s for the first time the government-imposed restrictions on the profits of pharmaceutical companies. The purpose of DPCO is to ensure the availability of essential and life-saving and prophylactic medicines of good quality at reasonable prices. However, it promotes the efficient use of medicines in the country to promote affordable production by economic size. Therefore, in this blog of Fortune Labs, we are going to explain to you about the Drug Price Control Order Act (DPCO Act) by all means.

Drug Price Control Order Act (DPCO Act)

Well, some pharmaceutical companies began to increase the prices of their products in order to get a higher ROI and affect the average user. When it comes to the Government’s view that pharmaceutical companies are raising the price of most of the products that their consumers should be buying. In order for the government to take action and introduce an action called the Drug Price Control Order or DPCO that states the value of the essential drug should be regulated by all means.

Benefits of the Drug Control Act (DPCO Act)

  • First of all, DPCO has simplified people’s lives by controlling drug prices and reaching all levels of the country.
  • Secondly, the government has taken many steps to improve the regulatory sector of the pharmaceutical industry and manufacturers so as not to exceed the expected prices by all means.
  • Thirdly, there are various types of drugs the Government of India has planned and scheduled now and then to control prices.
  • Additionally, these price controls apply to a certain number of drugs whether they are generic drugs or have a common brand. DPCO 2013 contains 680 drug formulations spread across 27 medical groups 348 drugs in the 2011 National Drugs list.
  • According to the World Health Organization, medicine is one of the most important factors in the economic impact, especially in developing countries. However, in economically perfect countries medicine represents 15 to 30% of health costs and 25 – 66% of developing countries.

DPCO Legal Features

  • First of all, the order brought an increase in the number of drugs from 74 to 348 and their composition of 652 under price control.
  • Apart from this, DPCO uses a simple middle-market method to calculate prices for all types of drugs with a market share of 1 percent or more.
  • Additionally, Margins have decided to drop by 8% and 16% for retailers and retailers respectively. Moreover, DPCO monitors market prices for both formal and informal formats.
  • Additionally, Drug manufacturers are eligible for an annual increase in price through a wholesale price index.
  • The provisions under this directive have empowered the govt. to regulate drug prices in the regulated sector.
  • DPCO considers various studies and research on the price of drugs or medicines.
  • Manufacturers, retailers, and retailers will be eligible for a penalty for violations of the deed, a fine will be chargeable for sure.
  • The govt. employs staff and other officials in accordance with government regulations to keep a check on companies.
  • At last, DPCO Regulates Multi-Drug Manufacturers as well by all means for sure.

Outstanding Information About the DPCO Act

As the Government of India has the power to fix the high selling price, it can be possible to analyze from the implementation of the DPCO Act to date, there have been a lot of fluctuations in prices and percentages in products and total price, low cost, etc. 

  • Dealing with all sorts of legal remedies arising from a decision taken by the National Pharmaceutical Pricing Authority.
  • DPCO aims to distribute equitably between the public and a fair balance between the public and the producers.
  • DPCO is also responsible for maintaining production data, export, and export, market share of individual companies, profits produced by companies in bulk and its formulation, and increasing the supply of Bulk Drugs.
  • The purpose of DPCO is to determine ceiling and non-ceiling prices and to create fair market prices.
  • DPCO aims to produce a comprehensive product and consider the needs of the community at the same time.
  • This Act aims at strengthening the quality control system of pharmaceutical manufacturers in India and supporting research and development.


The Drug Price Control Order is a program issued by the Government of India to take care of people’s health and profits if they are manufacturers of Bulk Drugs. It regulates and integrates almost all aspects of the pharmaceutical industry. The National Pharmaceutical Pricing Authority has played a very important role under this Order. He made it clear that it was the Government’s responsibility to make life-saving drugs, accessible to the general public.

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Drug Price Control Oder 2013 (DPCO) 

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