NPPA fixes retail price of 30 drug formulations

•  Drug price regulator NPPA has fixed the retail price for 30 drug formulations, including those used for treatment of diabetes, bacterial infections and high blood pressure.
• The National Pharmaceutical Pricing Authority (NPPA) has also revised the prices of three formulations, including that of anti-cancer drug -- Gemcitabine.
• NPPA fixes ceiling price of essential medicines of Schedule I under the Drugs (Prices Control) Order (DPCO) 2013. In respect of medicines that are not under price control, manufacturers are allowed to increase the maximum retail price by 10% annually.
• The calculation for essential drugs is based on the simple average of all medicines in a particular therapeutic segment with sales of more than 1%.

About National Pharmaceutical Pricing Authority (NPPA):

• NPPA is an organization of the Government of India which 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.

Functions of National Pharmaceutical Pricing Authority

• To implement and enforce the provisions of the Drugs (Prices Control) Order in accordance with the powers delegated to it.
• to deal with all legal matters arising out of the decisions of the Authority;
• to monitor the availability of drugs, identify shortages, if any, and to take remedial steps;
• to collect/ maintain data on production, exports and imports, market share of individual companies, profitability of companies etc, for bulk drugs and formulations;
• to undertake and/ or sponsor relevant studies in respect of pricing of drugs/ pharmaceuticals;
• to recruit/ appoint the officers and other staff members of the Authority, as per rules and procedures laid down by the Government;
• to render advice to the Central Government on changes/ revisions in the drug policy;
• To render assistance to the Central Government in the parliamentary matters relating to the drug pricing.

By: Vishal