The fallacy of Price Control !!!

This is an extract from ET editorial...

The author argues that the price control of the drugs would do more harm than good for India. He cites example of Germany, where the price control of drugs has benefited about 18$ billion in reduced drug prices but has driven out 22$ billion in R&D investment.

His solutions:
He wants health insurance to play a major role and thus sharing the risk of medication among the people.
He wants Government to play a major role in R&D funding so that cheaper products can developed and shared.

If deregulation of cement prices can make India the second largest producer of cement & delicensing of telecom can drastically reduce the phone bills, so can the phara industry.

His argument seems to be absolutely right. We should concentrate on improving the reach of health insurance, so that every one has access to quality drugs and facilities, rather than tinkering with the drug prices. But until then let people have access to cheaper drugs.