Last Updated on June 15, 2026 by The Health Master
78 Essential Formulations Under Review
The NPPA is reviewing applications from pharmaceutical companies seeking an increase in the prices of at least 78 Essential formulations.
The pharmaceutical industry had warned the NPPA that without some relief in the industry’s financial burdens, it would not be possible for the companies to manufacture these medications.
The reason for these increased manufacturing costs is due to the tight regulations that exist for the Indian pharmaceutical industry.
Under normal circumstances, the price of pharmaceutical drugs is only allowed to change in response to the changes in the Wholesale Price Index (WPI).
Due to changes in the supply chain for certain drugs, the WPI changes are insufficient to make up for the cost increases that the manufacturing plants have endured.
Why Pharma Companies are Demanding Higher Caps
There are several reasons that the pharmaceutical manufacturers are experiencing difficulty in producing the drugs at current rates:
- Skyrocketing costs of the Active Pharmaceutical Ingredients (APIs) that are required for the drugs to be effective.
- The fluctuations in the exchange rate of the Indian Rupee impacts the cost of the API chemicals that are sourced from foreign countries.
- General inflation of the production costs of these drugs.
Due to the cost burdens that these companies are facing, some have already applied for the discontinuance of certain drug formulations as a means of avoiding incurring further manufacturing losses.
The June 12 Ceiling Price Hike
The review of the 78 essential drug formulations is occurring after the implementation of a ceiling price hike on a separate batch of essential Indian drugs on June 12.
This price hike was determined by the Drugs Controller General of India (DCGI) to be a 50% increase in the ceiling prices of specific essential Indian drugs.
This decision was based on Paragraph 19 of the Drugs (Prices Control) Order (DPCO), 2013.
Paragraph 19 of the DPCO provides that when there is an exceptional circumstance that threatens the health and welfare of the population, the government may change the ceiling prices or the approved prices of drugs without the need to follow the normal Price Control procedures.
The Four Medications Granted an Immediate 50% Hike
The Drugs Controller General of India determined that a price hike for the four drugs listed below was essential to avoid a crisis in the availability of these drugs:
| Formulation Name | Primary Medical Use | Emergency Status |
| Cisplatin | Chemotherapy drug used to treat various types of cancers. | Approved (50% Increase) |
| Carboplatin | Vital first-line chemotherapy medication. | Approved (50% Increase) |
| Anti-Tetanus Immunoglobulin (250 IU) | Immediate post-exposure prophylaxis for tetanus prone wounds. | Approved (50% Increase) |
| Anti-Tetanus Immunoglobulin (500 IU) | High-dose critical care for tetanus prevention. | Approved (50% Increase) |
A History of Emergency Price Interventions
When these drugs were recognized as being in short supply or unavailable, the Indian government has raised their prices to ensure that there was an incentive for Indian pharmaceutical manufacturers to produce these drugs at the required rates:
- In December 2019, the government increased the prices of 21 drug formulations by 50% to ensure their availability within India.
- In June 2021, the government granted 9 drug formulations necessary for the treatment of critical illnesses to an emergency price increase.
- In October 2024, the Indian government announced that 11 essential drug formulations would be allowed to increase in price to assist the manufacturing industries in India.
The current review of the 78 essential Indian drugs will act as a means of adjusting the policy just enough to allow the manufacturing plants to remain in operation and to provide affordable drugs to the people of India.
