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The pharmaceutical industry is facing significant financial hurdles in implementing the government-mandated QR code authentication for the top 300 drug brands, a crucial measure aimed at enhancing consumer safety and preventing counterfeit drugs. While the initiative aligns with the Drugs (Prices Control) Order (DPCO) 2022, the high costs associated with setting up the necessary infrastructure are proving to be a major obstacle for many manufacturers.
Despite the industry's compliance with the directive, which required the QR code system to be in place by August 1, 2023, pharmaceutical companies are raising concerns about the financial strain. The costs for infrastructure, including Local Area Networks (LAN), printers, cameras, software licenses, and QR code implementation, are estimated to exceed rupees one crore per brand, creating a significant financial burden.
Industry leaders are urging the National Pharmaceutical Pricing Authority (NPPA) to introduce financial support measures, such as allowing companies to claim additional costs per formulation, to help offset the heavy expenditure associated with the mandate.
It has been urged to acknowledge these expenses and provide financial support to companies that have invested in QR code technology. Specifically, the industry is proposing that the NPPA allow companies to claim 30 paise per formulation that includes QR code authentication, which would help offset the considerable costs.
This request for financial support is not unprecedented. A few years ago, the government implemented a similar scheme allowing pharmaceutical companies to claim additional costs for including holographic stickers on certain drug formulations. Industry leaders argue that a comparable incentive is necessary to promote wider adoption of QR code technology and ensure compliance without jeopardizing profitability.
According to the Government of India’s notification GSR 823(E), issued by the Ministry of Health and Family Welfare (MoHFW) on November 17, 2022, it became mandatory for pharmaceutical companies to print QR codes on the packaging of the top 300 drug brands. The deadline for compliance was set for August 1, 2023. These QR codes are designed to help consumers verify the authenticity of the medicines they purchase, providing an additional layer of protection against counterfeit drugs in the market.
Despite the pharmaceutical sector’s efforts to implement QR codes, a significant issue also persists, which is a lack of public awareness. The primary objective of these QR codes is to allow consumers to verify the authenticity of their medicines, yet few patients are aware of this new feature. Industry insiders blame the government for failing to launch a comprehensive public awareness campaign to educate the public on how to use QR codes for drug authentication.
As a result, pharmaceutical companies have not seen an increase in authentication requests from consumers, rendering the costly implementation efforts less impactful. Industry stakeholders emphasize that without public awareness, the financial investment made by companies is not translating into the desired consumer safety benefits.
Industry leaders are urging the NPPA and other regulatory bodies to incentivize companies for their investment in QR code technology. They are also calling for a government-led public awareness campaign to educate consumers on the benefits of using QR codes to verify drug authenticity.
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