Last Updated on December 31, 2023 by The Health Master
Price fixation of drugs:
The National Pharmaceutical Pricing Authority (NPPA) has recently taken significant steps to regulate drug prices in India.
NPPA has fixed the ceiling prices of 915 scheduled formulations till the middle of July this year, apart from fixing retail price of around 2,450 new drugs notified under the Drugs (Prices Control) Order, 2013.
Let’s delve into the details of their recent actions, which include fixing the ceiling prices for scheduled formulations and determining the retail prices for new drugs under the Drugs (Prices Control) Order, 2013 (DPCO).
NPPA’s Efforts to Regulate Drug Prices:
The NPPA has been actively working to ensure affordable and accessible medicines for the masses.
To achieve this, they have undertaken the following key initiatives:
1. Revision of Ceiling Prices:
The NPPA has been revising the ceiling prices of scheduled formulations based on the Schedule I of the DPCO, 2013, which incorporates the National List of Essential Medicines (NLEM), 2015.
In September of the previous year, the NPPA released the updated NLEM 2022 and subsequently revised the Schedule I of the DPCO with the new list in November 2022.
2. Fixing Ceiling Prices and Retail Prices:
As a result of their efforts, the NPPA has successfully fixed the ceiling prices for 915 scheduled formulations until July 17, 2023.
Additionally, they have determined the retail prices for around 2,450 new drugs that were notified under the DPCO, 2013.
3. Impact on Formulations:
Out of the 915 scheduled formulations for which the ceiling prices were fixed, 691 formulations saw revisions based on the NLEM 2022, while 224 were revised under NLEM 2015.
Notably, the average reduction in the ceiling price for 600 formulations (excluding the 91 newly added formulations out of the 691) due to price refixation under NLEM 2022 was 16.71 percent compared to the ceiling prices fixed under NLEM 2015.
After accounting for the Wholesale Price Index (WPI) increase of 12.1218 percent, the net reduction in prices stands at 6.73 percent, effective from April 1, 2023.4.
4. Stakeholder Involvement:
The NPPA has been transparent in their process and engaged with stakeholders throughout the price-fixing exercise.
The draft calculation sheet for the ceiling prices of scheduled formulations under the revised Schedule I was released in several lots, starting from November of the previous year.
Companies were given 10 days to submit their representations from the date of release of the draft calculation sheet.
5. Addressing Stakeholder Concerns:
The NPPA received numerous representations from companies, highlighting concerns regarding the price fixation methodology and calculations.
In response, the NPPA provided explanations and made some additions to the methodology, taking into account various factors, including the high inter-brand price variation among identical formulations from a single company.
The Authority introduced a methodology to fix prices based on the principles of the DPCO, 2023.
6. Scope of Price Fixing Exercise:
In November 2022, the NPPA had announced that the ceiling price fixing and revising exercise would impact approximately 954 formulations in total.
This included 388 medicines, based on data from the market research firm Pharmatrac for the month of July 2022.
While the initial plan was to fix ceiling prices for around 819 unique formulations, subsequent expansions to the revised Schedule 1 and other factors may lead to an increase to around 1,000 formulations.
7. Government’s Commitment:
Dr. Mansukh Mandaviya, the Minister of Health and Family Welfare and Chemicals and Fertilisers, conveyed during the current Parliamentary session that the NPPA has been actively fixing the prices of 915 scheduled formulations and around 2,450 new drugs under the DPCO, 2013 until July 17, 2023.
In conclusion, the NPPA’s efforts to regulate drug prices are crucial in ensuring that essential medicines remain accessible and affordable to the general population.
Their commitment to transparency and stakeholder engagement is commendable and paves the way for a fair and sustainable pharmaceutical pricing framework in the country.
Disclaimer: This article contains information derived from Pharmabiz. Our team utilized an AI language model, to rewrite and present the news / article in a unique format.
Latest on National Pharmaceutical Pricing Authority (NPPA)
Latest notifications – DPCO / NPPA
NPPA updated price lists: Download
Latest Notifications: EC Act (Essential Commodities Act)
FAQs – On DPCO: Drugs (Prices Control) Order, 2013
TGA Australia gives approval for Tiotropium dry powder
DCGI gives approval to import heart failure drug
Bar Code or QR Code: Implementation mandated for Top 300 Brand Drugs from August 1, 2023
USFDA concludes inspection at Eugia Pharma with zero observation
The need for uniform pricing of Medical Devices and Surgical Products
Types of inspections done by USFDA: Read in detail
Drug alert: 48 out of 1273 samples declared as NSQ in June 2023
Indian Pharma Industry wants to end multiple inspections by USFDA
Govt asks Medical Stores not to sell painkillers without prescription: Delhi
AHUs, Air Types, Air Changes and their Functions in Pharma Industry
For informative videos by The Health Master, click on the below YouTube icon:
For informative videos on Medical Store / Pharmacy, click on the below YouTube icon:
For informative videos on the news regarding Pharma / Medical Devices / Cosmetics / Homoeopathy etc., click on the below YouTube icon:
For informative videos on consumer awareness, click on the below YouTube icon:
