High Costs Hamper QR Code Authentication Rollout for Top 300 Drug Brands

Industry leaders are urging the National Pharmaceutical Pricing Authority (NPPA) to introduce financial support measures to offset these heavy expenditures.

The pharmaceutical industry in India has been facing financial challenges in implementing government-mandated QR code authentication for the top 300 drug brands.

This measure, aimed at enhancing consumer safety and preventing counterfeit drugs, aligns with the Drugs (Prices Control) Order (DPCO) 2022.

However, the high costs of establishing the required infrastructure are proving to be a major obstacle for many manufacturers, as per industry experts.

What’s the Matter?

Pharma companies have complied with the directive, which required the QR code system to be in place by August 1, 2023.

However, the industry has raised concerns over the financial strain. Setting up infrastructure, including Local Area Networks (LAN), printers, cameras, software licenses, and QR code implementation, is estimated to cost over INR 1 Cr per brand, imposing a substantial financial burden on companies.

Following this, Industry leaders are urging the National Pharmaceutical Pricing Authority (NPPA) to introduce financial support measures to offset these heavy expenditures.

They have proposed that companies be allowed to claim an additional 30 paise per formulation that includes QR code authentication.

According to industry stakeholders, this financial assistance would help mitigate the high costs and ensure compliance without compromising profitability.

This request for support is not unprecedented. In the past, the government allowed pharmaceutical companies to claim additional costs for including holographic stickers on certain drug formulations.

Moreover, industry stakeholders believe that a similar incentive is necessary to promote the wider adoption of QR code technology and support compliance efforts.

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.

These QR codes are intended to help consumers verify the authenticity of medicines, providing a safeguard against counterfeit drugs in the market.

While the QR codes are meant to allow consumers to check the authenticity of their medicines, few patients know about this new feature.

Additionally, industry leaders are urging the NPPA and other regulatory bodies not only to incentivize companies for their investment in QR code technology but also to initiate a government-led public awareness campaign.

They believe that educating consumers on the benefits of using QR codes to verify drug authenticity is crucial for the initiative's success.