NPPA is set to fix the ceiling prices for more than 200 formulations

In response to these representations, the NPPA decided to consider the latest month's data, either October or September 2022.

The Health Master

January 8, 2024

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NPPA National Pharmaceutical Pricing Authority — Picture: Pixabay

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Last Updated on January 16, 2024 by The Health Master

NPPA

The National Pharmaceutical Pricing Authority (NPPA) plays a pivotal role in regulating drug prices in India, ensuring accessibility and affordability.

In a recent development, the NPPA is gearing up to fix the ceiling prices of over 200 scheduled formulations under the Revised Schedule I of the Drugs (Prices Control) Order, 2013.

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Background of Revised Schedule I

The revision of Schedule I involves significant changes, replacing the National List of Essential Medicines (NLEM), 2015, with the NLEM, 2022.

This amendment, notified by the Department of Pharmaceuticals on November 11, 2022, sets the stage for a comprehensive review of drug pricing.

Methodology for Price Revision

In November 2022, the NPPA outlined its methodology for price revision, opting to consider data for July 2022 and Pharmatrac database of the same month for fixing ceiling prices under the latest NLEM.

This transparent approach aimed to ensure accuracy and fairness in pricing.

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Current Status of Price Fixation

As of December 15, 2023, the NPPA has successfully fixed ceiling prices for 700 formulations under the NLEM 2022.

However, around 225 formulations remain pending for price fixation, according to official data.

The recent meeting on December 15 deliberated on a proposal for fixing ceiling prices for the remaining formulations based on October 2023 data.

Recent Developments

During the December 15 meeting, the NPPA considered a proposal to fix the ceiling prices for the remaining formulations based on the data available in the market database for October 2023.

The authority decided to examine the matter further and scheduled it for discussion in the next meeting.

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Correction of Ceiling Prices

An important aspect that surfaced in the process is the correction of ceiling prices for formulations that were fixed before the beginning of the current fiscal year.

This correction was necessitated by the implementation of price revision based on the Wholesale Price Index (WPI) of 12.1218 from April 1, 2023.

General Practice vs. Industry Recommendations

While the general practice is to consider market-based data for fixing ceiling prices, the NPPA deviated from the norm by choosing data from July 2022.

Industry associations played a crucial role in this decision, urging the authority not to consider April 2022 data, citing its potential lack of reflection of the current Price to Retailer (PTR)/Maximum Retail Price (MRP) of formulations.

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Industry’s Request and Government’s Consideration

The industry associations emphasized the importance of using post-implementation data for ceiling price fixation, considering the time lag for implementation, especially for imported formulations.

n response to these representations, the NPPA decided to consider the latest month’s data, either October or September 2022.

Total Unique Formulations and Potential Increase

Initially, the NPPA estimated fixing prices for around 954 formulations, comprising 388 medicines, based on the Pharmatrac database for July 2022.

However, with the expansions to the revised Schedule I and other factors, the total number of formulations may increase beyond 954 to around 1000 formulations, as per the authority’s statement.

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.

FAQs

Why did the NPPA choose data from July 2022 for price fixation?
- The NPPA considered industry representations and opted for July 2022 data, ensuring a more accurate reflection of current prices.
How does the correction of ceiling prices impact scheduled formulations?
- The correction, based on WPI, affected formulations with prices fixed before the current fiscal year, ensuring alignment with economic changes.
What role did industry associations play in the decision-making process?
- Industry associations influenced data selection, urging the NPPA to consider post-implementation data for imported formulations.
Why is the NPPA considering October 2023 data for the remaining formulations?
- The authority aims to utilize the most recent market data to fix accurate and up-to-date ceiling prices.
How many formulations are expected to have revised ceiling prices?
- Initially estimated at 954, the total may exceed 1000, considering expansions to the revised Schedule I.