Prices of essential drugs capped by NPPA
NPPA has fixed/revised ceiling prices of 22 scheduled formulations
of Schedule-I under Drugs (Price Control) Amendment Order, 2016 and retail
price of 13 formulations under DPCO, 2013. 22 essential drugs include drugs
used for treatment of cancer, HIV, bacterial infections and malaria among
others.
Background:
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%. The government had notified the DPCO 2013, which covers 680 formulations,
with effect from 15 May, 2014, replacing the 1995 order that regulated prices
of only 74 bulk drugs.
National Pharmaceutical Pricing Authority (NPPA):
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.
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.
