The National Pharmaceutical Pricing Authority (NPPA), the drug pricing regulator is working on to revise prices of 799 formulations which are already under price control, it is learnt.
The drug pricing regulator has already fixed ceiling prices of 103 scheduled formulations of Schedule-I under Drugs (Price Control) Amendment Order, 2016 on the basis of Wholesale Price Index (WPI) for the preceding calendar year 2015, effective from April 1, 2016.
Prices of these 103 formulation were recently revised, and now the NPPA has set targets to fix price for 799 formulations within 2 months time. It is for the first time that NPPA is working based on a timeline to fix the prices as per Drug Price Control Order (DPCO), as it took the 3 years to fix prices for 535 drugs in NLEM 2011.
Pharma companies might face a tough time with the drug regulator aggressive move. Nearly 40 drug prices are being fixed on daily basis to meet the targets.
As per the order, in exercise of the powers, conferred under Drugs (Prices Control) Order, 2013, read with SO 1394(E) dated the May 30th, 2013 issued by the government of India in the ministry of chemicals and fertilizers, NPPA fixed the ceiling prices as specified and revised ceiling prices as specified, exclusive of local tax applicable, if any, in respect of the Scheduled formulations specified with the strength and unit.
All the existing manufacturers of mentioned scheduled formulations having MRP lower than the ceiling price specified plus local taxes as applicable, if any, shall continue to maintain the existing MRP in accordance with paragraph 13 (2) of the DPCO, 2013 till March 31, 2016 and they shall further make corresponding reduction in MRP as per WPI @2.7105 per cent with effect from April 1, 2016.
The manufacturer may add local taxes only if they have paid actually or it is payable to the government on the ceiling price mentioned in the order.
The ceiling price for a pack of the scheduled formulation shall be arrived at by the concerned manufacturer in accordance with the ceiling price specified as per provisions contained in paragraph 11 of the Drugs (Price Control) Order, 2013. The manufacturer shall issue a price list in Form–V as per the paragraph 24 (2) of the DPCO, 2013.
The manufacturer not complying with the ceiling price and notes specified shall be liable to deposit the overcharged amount along with the interest thereon under the provisions of the Drugs (Price Control) Order, 2013 read with the Essential Commodities Act, 1955. Consequent to the issue of ceiling price of the scheduled formulation as specified in this notification, the price order(s) if any in respect of such scheduled formulations, issued prior to the above said date of notification, stand superseded.
