NPPA caps prices of another 50 drugs
The National Pharmaceutical Pricing Authority (NPPA) has capped the prices of 50 drugs and revised the prices of four others.
- This is part of the new drug pricing control order, notified on March 14, which effectively brings 200 more drug formulations under regulation.
- NPPA is also planning to cap the prices of 40 other drugs, for which it has asked all the companies to provide requisite information by May 10.
Background:
In December 2015, while issuing a new National List of Essential Medicines (NLEM),
the government had added 106 and removed 70 medicines from the earlier one of 2011, expanding the list to 376 from 348 earlier. Whenever there is a new NLEM, the government has to issue a new Drug Price Control Order and NPPA needs to set their ceiling prices subsequently.
the government had added 106 and removed 70 medicines from the earlier one of 2011, expanding the list to 376 from 348 earlier. Whenever there is a new NLEM, the government has to issue a new Drug Price Control Order and NPPA needs to set their ceiling prices subsequently.
Based on the new NLEM, the government on March 14 notified the Drugs (Price Control) Amendment Order, 2016. It has 820 formulations. There were 628 formulations under the DPCO of 2013, notified in the wake of the NLEM of 2011.
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.
