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This book presents an extensive study on the effectiveness of recent regulations on pharmaceutical prices in India, exploring the weaknesses in the design and implementation of pharmaceutical price controls and investigating what can be done to fix the broken system. In addition, it examines the extent to which essential medicines are actually made affordable by price controls. The book argues that companies make the pharmaceutical price control regime largely ineffective by coordinating to increase pre-regulation prices; by diversifying horizontally away from the regulated markets and increasing prices in the unregulated markets; by manipulating trade margins; and by refusing to comply with the regulation because the penalties remains negligible. The book draws on extensive empirical research involving India’s 2013 Drug Price Control Order and widely-used medicines such as paracetamol and metformin to illustrate how firms have weakened regulation. It argues that the regulatory regime can be strengthened by using systematic analysis of product- and region-level data in the Indian pharmaceutical industry, and by screening for the strategies that firms currently employ to circumvent regulation. In closing, it discusses recent efforts to strengthen the implementation of price controls in India and expanding the scope of price controls to medical devices.

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This book investigates and highlights the most critical challenges the pharmaceutical industry faces in an increasingly competitive environment of inflationary R&D investments and tightening cost control pressures. The authors present three sources of pharmaceutical innovation: new management methods in the drug development pipeline; new technologies as enablers for cutting-edge R&D; and new forms of cooperation and internationalization, such as open innovation in the early phases of R&D. New models and methods are illustrated with cases from Europe, the US, and Asia. This third fully revised edition was expanded to reflect the latest updates in open and collaborative innovation, the greater strategic importance of venture capital and early-stage investments, and the new range of emerging technologies now being put to use in pharmaceutical innovation. Health care innovation is possibly the greatest opportunity and challenge of our generation. This important book shows how pharmaceutical companies will continue to play an instrument role in making our lives better. Stefan Thomke, William Barclay Harding Professor of Business Administration, Harvard Business School Very comprehensive review and analysis of current challenges for the biopharmaceutical industry. To stay competitive in this new technology driven environment, the industry started to develop new partnership models to close the innovation gap and provide patients with the relevant healthcare toolkits at the convergence of pharmaceuticals, diagnostics and IT technologies. Very exciting times ahead well depicted in this book! Karima Boubekeur, VP Emerging Portfolio and Search & Evaluation, AstraZeneca Great. The 3rd edition is not only an update. It’s an outstandingly featured summary on the challenges of pharma innovation. Eckard von Keutz, SVP and Head of Early Development, Bayer Healthcare.

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