NPPA caps price of 18 formulations packs

NPPA has capped prices of 18 formulations packs, including anti- diabetic Metformin HCl tablets, anti-bacterial Ceftriaxone Sodium injection packs and devices among others.

The prices of the 18 formulation packs have been fixed/revised under Drug Price Control Order (DPCO), 2013. Drug firms such as Cipla, Alembic Pharma and Unichem Laboratories will be impacted by the government’s move for prices fixation and revision.

At present, the government caps prices of essential drugs based on the simple average of all medicines in a particular therapeutic segment with sales of more than 1%. In case of non-scheduled formulations companies are allowed to hike prices of medicines by only up to 10% in a year.

The government had notified DPCO, 2013, which covers 680 formulations, effective May 15, 2014, replacing the 1995 order that regulated only 74 bulk drugs.

NPPA was established, inter alia, to fix/ revise the prices of controlled bulk drugs and formulations and to enforce prices and availability of the medicines in the country, under the Drugs (Prices Control) Order, 1995.
The organization is also entrusted with the task of recovering amounts overcharged by manufacturers for the controlled drugs from the consumers.

It also monitors the prices of decontrolled drugs in order to keep them at reasonable levels. It also deals with all the legal matters for the issues arising by its order and it also collect and maintain data on production, exports and imports, market share of individual companies, profitability of companies etc, for bulk drugs and formulations. It is also entrusted to monitor the availability of drugs, identify shortages, if any, and to take remedial steps.