India is in high-level talks with the UAE to find a solution for pricing norms, which restrict Indian generic drugs and vaccine exports, Mint, an Indian financial daily reported, citing two informed sources.

The UAE and other Gulf countries use external reference pricing (ERP) to regulate pharmaceutical prices. Under this policy, manufacturers specify a basket of countries whose prices they use to inform the price of medical supplies in the country.

The reference price is being discussed at the “highest level” as the issue is a cause for concern for Indian drug manufacturers, which dominate the affordable generic drug industry, a source said.

The UAE’s pharma market is estimated at $3.5 billion, with imports at 80%. Moreover, the emirate is a global hub that provides Indian drugmakers access to other international markets, especially the GCC.

The free trade deal India signed with the UAE last February has managed to get fast-paced drug approval, but pricing barriers continue.

As per the agreement, the UAE agreed to allow market access for Indian medicines within 90 days of approval in the US and UK, the newspaper said.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)