Pricing Strategy in Pharma Industry

Submitted to:
Prof. Sukrut Mehta

November 27th, 2021

Submitted by: Group 9

Rashmi Quamar - A001

Anoushka Das – A003
Vishal Sharma- A025
Anand Praveen - A036
Client A:
1) Omeprazole 10 mg granules in a sachet (Each sachet contains Omeprazole magnesium USP eq
to omeprazole 10 mg (as enteric coated)) – NS
a. First time in India
b. Proposed pack: 1 sachet
c. Proposed MRP per pack: Rs. 7.50 per sachet
 First, we check for new drug according to DPCO 2013:
According to the case, the company does not produce omeprazole 10 mg capsule which is part of the NLEM
2015 and hence cannot be considered as an existing manufacturer under DPCO 2013 and therefore Part A of
the condition of new drug definition in the DPCO 2013 is not satisfied.
Omeprazole Powder for oral liquid 20 mg is mentioned in the scheduled formulation in DPPCO 2013 and
the company intends to launch Omeprazole 10 mg granules in a sachet which is not a scheduled formulation.
Therefore, the product comes under non-scheduled formulation according to DPCO 2013.

 According to DPCO 2013, Non-scheduled formulations can have price fixation: Any price deemed
fit
 Fill form-5 Non-scheduled within 15 days of retail sales.
Suggestion:
Hence, our suggestion is that the product can be launched at the proposed MRP.

2) Diclofenac potassium 50mg sachets (Each sachet contains Diclofenac Potassium BP: 50mg) –
NS
a. Competition:
i. Densaid QA sachet from Delvin formulation. MRP per pack: Rs. 15
ii. Dolentia granules sachet from Akumentis. MRP per pack: Rs.29.90
b. Proposed pack: 1 sachet
c. Proposed MRP - Rs. 9.90 per sachet

 First, we check for new drug according to DPCO 2013:

According to the case, the company produces diclofenac 50 mg in generic form and hence the company can
be considered as an existing manufacturer under DPCO 2013 and therefore Part A of the condition of new
drug definition in the DPCO 2013 is satisfied.
According to the case, we have Diclofenac potassium 50mg sachets, which is different from Diclofenac 50
mg covered under section 2, schedule I of NLEM 2015, hence it does not fulfil part B and C of the new drug
criteria according to DPCO 2013.
Therefore, the product comes under non-scheduled formulation according to DPCO 2013.

 According to DPCO 2013, Non-scheduled formulations can have price fixation: Any price deemed
fit
 Fill form-5 Non scheduled within 15 days of retail sales.
Suggestion:
Hence, our suggestion is that the product MRP can be increased to atleast Rs. 15.
 3) Each tablet shall contain Aceclofenac 100mg + Drotaverine 80mg

 First, we check for new drug according to DPCO 2013:

According to the case, we have Aceclofenac 100mg + Drotaverine 80mg, Aceclofenac 100mg and
Drotaverine 80mg are non-scheduled formulation under NLEM 2015, and the case does not mention
whether the company is an existing manufacturer of Aceclofenac 100mg or Drotaverine 80mg hence the
given formulation is not a new drug.
Therefore, the product comes under non-scheduled formulation according to DPCO 2013.

 According to DPCO 2013, Non-scheduled formulations can have price fixation: Any price deemed
fit
 Fill form-5 Non-scheduled within 15 days of retail sales.
According to the notification (3982(E)) Acelofenac + Paracetamol Tablet (Winace) M/s Windlas Biotech
Pvt. Ltd. / M/s Win Medicare Pvt. Ltd, the ceiling price per tablet was Rs. 3.34
Suggestion:
Hence, our suggestion is that the product can be launched at any price deemed fit around Rs. 3.34 per
tab.

4) Each 13.7g sachet shall contain: -

a. Polyethylene Glycol USNF 13.125g
b. Potassium Chloride IP 46.6 mg
c. Sodium Chloride IP 350.7mg
d. Sodium Hydrogen Carbonate IP 178.5 mg

 First, we check for new drug according to DPCO 2013:

According to the case, we have Polyethylene Glycol USNF 13.125g, Potassium Chloride IP 46.6 mg,
Sodium Chloride IP 350.7mg, and Sodium Hydrogen Carbonate IP 178.5 mg. Sodium Chloride IP 350.7mg,
and Sodium Hydrogen Carbonate IP 178.5 mg. are non-scheduled formulation under NLEM 2015, and the
case does not mention whether the company is an existing manufacturer of Potassium Chloride IP 46.6 mg,
Sodium Chloride IP 350.7mg, and Sodium Hydrogen Carbonate IP 178.5 mg, hence it does not satisfy part –
A of the new drug definition in DPCO 2013.
Therefore, the product comes under non-scheduled formulation according to DPCO 2013.

 According to DPCO 2013, Non-scheduled formulations can have price fixation: Any price deemed
fit
 Fill form-5 Non-scheduled within 15 days of retail sales.
According to the notification (1213(E)) Oral Rehydration Salts, the ceiling price per gram was Rs. 0.89
Suggestion: Hence, our suggestion is that the product can be launched at any price deemed fit around
Rs. 0.89 per gram.
Client B:
1) Each film coated tablet contains: - Form 1
a. Escitalopram Oxalate IP Eq. to Escitalopram 10 mg
b. Clonazepam IP 0.25 mg
c. Colour: Titanium Dioxide IP
Clonazepam tablet 0.25 mg and Escitalopram tablet 10 mg comes under section 27.3.1 and 27.2.1.2 of
NLEM 2015 respectively and hence are scheduled formulations.
According to the case, the company is not an existing manufacturer of either Escitalopram 10 mg tablet or
Clonazepam 0.25 mg which are scheduled formulations and hence cannot be considered as an existing
manufacturer under DPCO 2013 and therefore Part A of the condition of new drug definition in the DPCO
2013 is not satisfied.
Therefore, the product comes under non-scheduled formulation according to DPCO 2013.

 According to DPCO 2013, Non-scheduled formulations can have price fixation: Any price deemed
fit
 Fill form-5 Non-scheduled within 15 days of retail sales.
Suggestion:
Hence, our suggestion is that the company should go forward with pharmacoeconomic study for the
combination and then fix the price.

2) Each film coated tablet contains: - NS

a. Opipramol Dihydrochloride 50mg
b. Colours: Quinoline Yellow WS & Titanium Dioxide IP

Opipramol Dihydrochloride 50mg is a non-scheduled formulation according to DPCO 2013 as it is not part
of scheduled formulation in NLEM 2015.

 According to DPCO 2013, Non-scheduled formulations can have price fixation: Any price deemed
fit
 Fill form-5 Non-scheduled within 15 days of retail sales.
Suggestion:
Hence, our suggestion is that the company should analyse the existing Opipramol Dihydrochloride
market and offer a competitive price.
3) Each Tablet contains: -
a. Metformin HCL SR 50mg
b. Voglibose 10mg
c. Glimepiride 25mg
Metformin HCL SR 50mg, Voglibose 10 mg and Glimepiride 25 mg are not part of scheduled formulation
under NLEM 2015 and cannot be considered as an existing manufacturer under DPCO 2013 because even
though it manufactures Metformin HCL SR – 100 mg, it is not part of NLEM 2015 and therefore Part A of
the condition of new drug definition in the DPCO 2013 is not satisfied.
Metformin HCL SR 50mg, Voglibose 10 mg and Glimepiride 25 mg are non-scheduled formulation under
DPCO 2013.

 According to DPCO 2013, Non-scheduled formulations can have price fixation: Any price deemed
fit
 Fill form-5 Non-scheduled within 15 days of retail sales.
Suggestion:
Hence, our suggestion is that the company should go forward with pharmacoeconomic study for the
combination and then fix the price.

4) Each Tablet contains:

a. Ferrous Ascorbate 50mg
b. Folic Acid 5mg
Even though we are existing manufacturers of Ferrous Calcium Citrate equivalent to Elemental Iron 100 mg
+ Folic Acid 0.3 mg, the combination manufactured by the company does not come under NLEM 2015 and
hence the company cannot be considered as an existing manufacturer as it does not satisfy Part -A of new
drug definition in DPCO 2013.
Hence, Tablet containing Ferrous Ascorbate 50 mg and Folic Acid 5mg will be considered as non-schedule
formulation under DPCO 2013.

 According to DPCO 2013, Non-scheduled formulations can have price fixation: Any price deemed
fit
 Fill form-5 Non-scheduled within 15 days of retail sales.
Ferrous Salt (A) + Folic Acid (B)- Tablet 100mg elemental iron(A) + 500mcg (B) has a ceiling price of Rs. 0.23/tablet
according to notification 1213(E)

Suggestion:
Hence, our suggestion is that the product can be launched at any price deemed fit around Rs. 0.23 per
tablet.