India to give free drugs to hundreds of millions

From city hospitals to tiny rural clinics, India’s public doctors will soon be able to prescribe free generic drugs to all comers, vastly expanding access to medicine in a country where public spending on health was just $4.50 per person last year.
The plan was quietly adopted last year but not publicized. Initial funding has been allocated in recent weeks, officials said.
Under the plan, doctors will be limited to a generics-only drug list and face punishment for prescribing branded medicines, a major disadvantage for pharmaceutical giants in one of the world’s fastest-growing drug markets.
“Without a doubt, it is a considerable blow to an already beleaguered industry, recently the subject of several disadvantageous decisions in India,” said KPMG partner Chris Stirling, who is European head of Chemicals and Pharmaceuticals.
“Pharmaceutical firms will likely rethink their emerging markets strategies carefully to take account of this development, and any similar copycat moves across other geographies,” he added.

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