Last Updated on June 8, 2023 by The Health Master
Monitoring of MRPs in the Pharma Industry
In an effort to combat unjust trade practices within the pharmaceutical sector, the UT health secretary has called upon the National Pharmaceutical Pricing Authority (NPPA) to conduct rigorous oversight of the maximum retail prices (MRPs) for specific non-schedule formulations, which are drugs not subject to direct price controls.
Ensuring Transparency and Fairness in the Pharmaceutical Market
The health secretary of Chandigarh has made this appeal to guarantee transparency and fairness in the pharmaceutical market while emphasizing the critical importance of maintaining affordable access to essential medications for all individuals.
This move is motivated by concerns regarding potential price manipulation and the necessity to shield consumers from exploitative practices.
The Role of the National Pharmaceutical Pricing Authority (NPPA)
The NPPA, operating under the Department of Pharmaceuticals, serves as a regulatory body responsible for implementing and enforcing the provisions outlined in the Drugs Price Control Order (DPCO).
Uncovering Price Discrepancies: A Case Study
On April 15, the health secretary, Yashpal Garg, conducted a discreet investigation by visiting three chemist shops located on the campus of GMSH, Sector 16, posing as a patient.
Each of these shops provided a different syrup containing the same salts:
- Magaldrate,
- Simethicone, and
- Oxetacaine.
Upon further investigation by drug regulators, it was discovered that a manufacturer in Parwanoo, Solan, Himachal Pradesh, initially sold the “MCAIN” brand of syrup for ₹18 per bottle, but assigned an MRP of ₹267.
Shockingly, as the product traversed through the distribution chain, it was successively sold for ₹18, ₹25, ₹171, ₹190.72, and ultimately, for ₹226.95 to the consumer, even after applying a 15% discount.
This analysis revealed an astronomical 1483% increase in the syrup’s MRP from the manufacturer’s initial sale price.
Similarly, the brand “RICAINE” from a manufacturer based in Mohali was initially sold for ₹19 per bottle, with an MRP of ₹159—an 837% surge from the initial sale price.
Likewise, the brand “SUFIT-O,” produced by a manufacturer in Baddi, Solan, Himachal Pradesh, had an initial sale price of ₹18 per bottle, but boasted an MRP of ₹160, an astonishing 889% higher than the original sale price.
Urgent Action Needed to Address Unfair Trade Practices
The health secretary has highlighted the alarming MRPs observed for non-schedule formulations, which raise concerns about unfair trade practices by manufacturers and dealers.
It is possible that similar practices are occurring with other non-schedule formulations as well.
Garg has emphasized that manufacturers and dealers failed to inform the authorities about the MRPs, thereby urging a comprehensive investigation into the matter and the appropriate course of action.
Establishing a Pharmaceutical Price Monitoring Resource Unit
While Chandigarh is in the process of establishing a pharmaceutical price monitoring resource unit, a registered society has been formed for this purpose. However, it may take some time to initiate its operations, according to Garg.
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