NPPA fixes ceiling price of 54 drug formulations
The National Pharmaceutical Pricing Authority (NPPA) has fixed ceiling price of 54 drug formulations used for treatment of cancer, bacterial infections, diabetes and hypertension.
NPPA has revised/fixed the ceiling prices as per the Schedule-I under Drugs (Price Control) Amendment Order (DPCO), 2016.
Besides, it also has fixed the retail price of 11 drug formulations under DPCO, 2013, which covers 680 formulations with effect from May 15, 2014.
What is Drug Pricing and Regulation?
- In India, the Central Government fixes the prices of essential drugs based on the simple average of all medicines in a particular therapeutic segment, having sales of more than 1%.
- The drugs are brought under price control as part of its efforts to make medicines affordable in the country.
- Besides, it also regulates the prices of all other medicines, while pharmaceutical companies are allowed to hike prices of such drugs by up to 10% in a year.
About National Pharmaceutical Pricing Authority (NPPA)
- NPPA is nodal drug price regulator in India established in 1997.
- It functions under the Union Ministry of Chemicals and Fertilisers.
- It is entrusted with the task of fixation/revision of prices of pharma products, enforcement of provisions of the DPCO and monitoring of prices of controlled and decontrolled drugs.
Month: Current Affairs - May, 2016