National Pharmaceutical Pricing Authority (NPPA) allows price hikes of essential medicines like Carbamazepine, Ranitidine and ibuprofen by 50 percent. They have included 9 strengths of these medicines and allows manufacturers to increase pricing after being advised by the Standing Committee on Affordable Medicines and Health Products (SCAMHP), Niti Aayog, Government of India.
NPPA has been receiving applications for upward price revision under para 19 of DPCO, 2013 since last more than two years citing various reasons like increase in cost of production, exchange rates etc. resulting in unviability in sustainable production and marketing of the drugs.
Later, NPPA referred the issue to the Standing Committee on Affordable Medicines and Health Products (SCAMHP), Niti Aayog, Government of India for guidance on the modalities or methodology to be followed for such cases. Then SCAMHP in its 2nd meeting held on 07.11.2019 has recommended examination of formulations or molecules experiencing manufacturing unviability due to low prices and considering price revision by allowing 50% increase from the ceiling price.
Inter-Ministerial Committee constituted for examination of cases under Para 19 of DPCO 2013 has examined the representations and observed that the formulations of the three drugs are essential medicines for public health management and pricing of these should not be reason for shortage and unavailability of these medicines, and accordingly recommended for upward revision of price under Para 19 of DPCO 2013.
NPPA in its 89th meeting dated 28.06.2021 deliberated upon the case of upward price revision of the formulations of these drugs under para 19 of DPCO 2013 and noted that the scheduled formulations being considered for upward price revision under para 19 of DPCO 2013 are low priced drugs and have been under repeated price control.
These drugs are used as the first line of treatment and are important to the public health program of the country. Further, the mandate of NPPA is to ensure availability of drugs at affordable prices and it was noted that while ensuring affordability, access cannot be jeopardized and the life saving essential drugs must remain available to the general public at all times. Therefore, the NPPA is of the considered view that unviability of these formulations should not lead to a situation, where these drugs become unavailable in the market and the public is forced to switch to costly alternatives.
NPPA is cognizant that as per the prevailing policy, cost based pricing is not feasible. To address the situation arising due to repeated price control, one time price increase of 50% from the present ceiling price is being considered in public interest as an exceptional measure as advised by SCAMHP.
Accordingly, NPPA invokes extraordinary powers in public interest under para 19 of DPCO 2013 for upward revision of the ceiling prices of the nine scheduled formulations of 3 drugs by giving a one time increase of 50% from the present ceiling price.
Also NPPA informed all manufacturers of these formulation, selling the branded or generic or both the versions of these formulations at a price higher than the ceiling price (plus Goods and Services Tax as applicable) so fixed and notified by the Government, shall revise the prices of all such formulations downward not exceeding the ceiling price.
Subscribe to PharmaTutor News Alerts by Email
