‘Centre’s policy can succeed if quality of generics improves’

Jefferies said: “In our view, without steps for improving quality standards for drugs available in the market, the move will not have much material impact and will shift power from doctors to pharmacists.” As per Jefferies, transition to generics is a long term aim where the first step needs to be quality. 

The push towards generic drugs began with Prime Minister Narendra Modi declaring that the government will bring a legal framework to get doctors to prescribe generic names, said Jefferies. Soon after the Medical Council of India (MCI) directed doctors to write generic names in prescriptions or face disciplinary action. As per Jefferies, the push to get the doctors to prescribe generic names, is one of the many steps the Centre has been taking to reduce medical costs in India. 

The key ones are – a) expansion of National list of Essential Medicines (NLEM) bringing them under price cap, b) push by the government to increase awareness of generic drug prices and c) increase access through Jan Aushadhi programme. “A shift to a generic-generic model (like the US) from the branded generic model currently in India, requires confidence among doctors, pharmacists and patients on the quality of drugs available in market,” Jefferies said. 

The key focus of the government then needs to be towards strengthening and empowering the regulator. It also needs to improve and standardise the drug approval process in India, the report added. “Without quality assurance, move just shifts power to pharmacy - Without quality assurance and awareness, we believe branded generics will  still retain majority share,” Jefferies said.