Drug Price Control Order (DPCO) Act

Drug Price Control Order (DPCO) Act – In this blog by Stensa Lifesciences, we will talk about Drug Price Control Order (DPCO) and if you wanted some information regarding the same then keep reading this blog because Stensa Lifesciences has done its research and come with very useful information in simple language that will give a detailed idea about this act. So without any further delay, let’s get started. The pharma business is trending since old times and involved dealing with certain types of drugs or medicines that are designed & manufactured to meet the needs of patients and to cure various illnesses or diseases. The human body is prone to encounter various types of diseases and they need different types of medicines to cure these diseases. All these medicines or drugs are developed with a goal to cure various issues, treat and to diagnose.Drug Price Control Order (DPCO) Act

The medicines or drugs manufactured are considered under the Food and Drug Administration (FDA) and allotted on the prescription of a doctor or physician. Moreover, In India, DPCO (Drug Price Control Oder) controls or regulates the prices of several drugs or medicines. It is an order that is regulated by the government of India to control and fix the prices of medicines or drugs and their formulations. The DPCO act is passed under the “Essential Commodities Act” and allows the government to control and set the rates of bulk medicines or drugs. The Indian government issued this act under section 3 of the Essential Commodities Act, 1955 to regulate, control, and put some restrictions on price control.

The DPCO act involves setting prices of drugs or medicines, punishment involved, how to impose penalties, revision of rates, ways to the recovery of dues, and various other guidelines. The DPCO act was first enacted for the first time in the 1970s. This was the time when to regulate and control the prices of drugs or medicines, the government of the country put several restrictions or limits on the profitability of pharmaceutical companies. The main aim of introducing the Drug Price Control Order (DPCO) act is to ensure that all the necessary, life-saving medicines or drugs that too of top-quality are available at reasonable and affordable prices to everyone. Apart from this, this act is also promoting the rational use of drugs in the country to increase cost-effective production with economic sizes.

Reason for the Formation of DPCO

The biggest reason behind the formation of the Drug Price Control Order by India’s government is to control the prices of several drugs or medicines. There was a great need to have an act like this as in recent times, several pharma companies started to increase the rates or prices for their medicines. They did this to earn a huge amount of profits and returns. The pharma companies back then are fixing very high prices of their drugs or medicines to make more money. As a result of these practices, necessary or life-saving drugs or medicines were becoming very expensive for normal people and they were unable to afford these medicines. When the government of Indian came to know about these false practices that pharma companies are unnecessarily raising the prices of their medicines or drugs, they took the decision and launched an act to regulate and take control over prices. Hence, medicine or drugs become affordable for everyone.

Importance of DPCO (Drug Price Control Order )

We all know that India is one of the largest pharma hubs across the world and the Indian market is a very brand-oriented market. Moreover, the Indian market is full of pharma firms that deliver almost every type of medicine or drugs. Hence, the level of competition among companies is also high. A branded generic market refers to a market where, healthcare professionals, pharmacists, doctors, or pharmacists prescribe the medicine or drug brand to be used by the patient.

Despite the huge availability of other affordable and genuine pharma brands in the market, sometimes these healthcare professionals, pharmacists, or doctors prescribe the drugs or medicines of reputed and leading pharma companies that have very high prices in the market. Patients are also unaware of these malpractices done by doctors and sometimes they prefer to select low-quality drugs or medicines substitutes for the expensive medicines. Therefore making it necessary for the government to interfere and take steps.


The Drug Price Control Order (DPCO) act is an act that is launched by the Government of India to put some restrictions and take control over the prices of medicines or drugs and control the profits of manufacturers. This act has also helped to make necessary and life-saving medicines or drugs affordable and reachable to every patient who needs them. This act has also resulted in long-term and short-term impacts on other business industries as well. In this blog, we try to shed light on Drug Price Control Order (DPCO) and we hope that this blog was helpful and you got the information that you were searching for.

In this blog, we also mentioned that why this act was formed, and what is its importance.
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