Why are drug prices revised periodically?

Drug prices are subject to revision to ensure affordability and accessibility for patients. Factors like changes in manufacturing costs, input costs, and government policies can influence price adjustments.

How does the NPPA determine drug prices?

The NPPA considers various factors, including the cost of production, distribution, and marketing, as well as the therapeutic value of the drug. It also takes into account international pricing trends and the affordability of the drug for patients.

NPPA Revises Ceiling Prices of these Key Drugs

The DoP reviewed numerous applications from pharmaceutical companies and issued orders directing the NPPA to re-calculate ceiling prices.

The Health Master

November 20, 2024

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Last Updated on November 30, 2024 by The Health Master

NPPA

The National Pharmaceutical Pricing Authority (NPPA) has recently made significant adjustments to the ceiling prices of several essential medications.

These revisions, stemming from review orders issued in October 2024, aim to ensure fair pricing and accessibility for patients.

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Key Drugs Affected by Price Revisions

The NPPA’s latest decisions have impacted the following drug formulations:

Local Anesthetics:

Lignocaine Injection 2%: The ceiling price has been increased from Rs. 1.04 per ml to Rs. 1.14 per ml.
Lignocaine Topical Forms 2-5% per gm: The ceiling price has been decreased from Rs. 1.13 per gm/ml to Rs. 1.08 per gm/ml.

Antibiotics:

Clarithromycin 250mg: The ceiling price has been increased from Rs. 23.89 per tablet to Rs. 24.06 per tablet.
Clarithromycin Oral Liquid 125mg per 5ml: The ceiling price has been increased from Rs. 4.61 per ml to Rs. 4.65 per ml.

Vitamin Supplements:

Ascorbic Acid (Vitamin C) 500mg: The ceiling price has been increased from Rs. 1.48 per tablet to Rs. 1.54 per tablet.
Thiamine Injection 100mg/ml: The ceiling price has been increased from Rs. 22.59 per ml to Rs. 26.70 per ml.

Click for NPPA updated price list

Reasons Behind the Price Revisions

The NPPA’s decisions were influenced by several factors, including:

Review Orders from the Department of Pharmaceuticals (DoP): The DoP reviewed numerous applications from pharmaceutical companies and issued orders directing the NPPA to re-calculate ceiling prices.
Allegations of Pricing Errors: Several companies alleged that the NPPA had made errors in calculating ceiling prices, particularly with regard to the inclusion of certain products and the consideration of factors like the Wholesale Price Index (WPI).

Impact on Patients and the Pharmaceutical Industry

These price revisions may have a direct impact on patients, especially those who rely on these medications regularly.

While some prices have increased, others have decreased, reflecting the complex dynamics of drug pricing.

The pharmaceutical industry will also be affected by these changes. Companies may need to adjust their pricing strategies to comply with the new ceiling prices.

By understanding the reasons behind these price revisions and their potential impact, patients and industry stakeholders can make informed decisions.

Also read following FAQs

Why are drug prices revised periodically?

Drug prices are subject to revision to ensure affordability and accessibility for patients. Factors like changes in manufacturing costs, input costs, and government policies can influence price adjustments.
How does the NPPA determine drug prices?

The NPPA considers various factors, including the cost of production, distribution, and marketing, as well as the therapeutic value of the drug. It also takes into account international pricing trends and the affordability of the drug for patients.

Disclaimer: This article contains information derived from the source mentioned below. Our team utilized an AI language model to rewrite and present the news or article in a unique format.