Prices of 22 essential drugs used for treatment of cancer, HIV, bacterial infections and malaria among others, have been capped by the government, reducing the cost in the range of 10-45 per cent.
Drug price regulator NPPA has also fixed the retail price of 13 formulations.
“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,” the National Pharmaceutical Pricing Authority (NPPA) said in a statement.
When contacted, NPPA Chairman Bhupendra Singh told PTI, “The prices have been reduced in the range of 10 to 45 per cent. While the prices of some drugs have been reduced by 10 per cent, prices of others have been cut by up to 45 per cent.”
As stipulated under the Drugs (Prices Control) Order (DPCO) 2013, NPPA fixes ceiling price of essential medicines of Schedule I.
In respect of medicines not under price control, manufacturers are allowed to increase the maximum retail price by 10 per cent annually.
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 per cent.
The government had notified the DPCO 2013, which covers 680 formulations, with effect from May 15, 2014, replacing the 1995 order that regulated prices of only 74 bulk drugs.
Set up in 1997, NPPA has been entrusted with the task of fixation/revision of prices of pharma products, enforcement of provisions of DPCO and monitoring of prices of controlled and decontrolled drugs.