NPPA fixes prices of 8 drugs

The National Pharmaceutical Pricing Authority (NPPA) has fixed the prices of eight medicines which were so far outside the price control regime.

The government used the public interest clause under the Essential Commodities Act to fix the prices of the medicines manufactured by leading drug makers like Ranbaxy Laboratories, Lupin Ltd, Nicholas Piramal and Ind-Swift.

This is the first time in the decade-long existence of the NPPA that the authority resorted to the use of Clause 10 (b) of the Drug Price Control Order (DPCO) to check drug prices of the de-controlled category of medicines, other than the 74 scheduled drugs for which the NPPA fixes the ceiling prices from time to time.

The NPPA maintained that the action was based on the market data from ORG-IMS, which revealed that companies increased the drug prices beyond the maximum allowable 20 per cent in a year.

A notification issued today said the NPPA had fixed the ceiling prices of Jointace tablets, manufactured by Meyer Health Care and Meyer Organics, with a ceiling price of Rs 84.84 for a 15-tablet strip, Normaxin tablets, manufactured by Systopic Laboratories, at Rs 18.68, Rablet-IV injection manufactured by Lyka Labs and Lupin (Rs 57.50 for vial and ampule), Roscillin 500 mg capsules manufactured by Ranbaxy Laboratories (Rs 66.77), Pioz "� G 2/15 tablets of USV Ltd (Rs 61.92), Ulcikit of Greesha Labs Pvt Ltd (Rs 43.34), Urclar 250 mg tablets manufactured by Ind-swift Ltd and marketed by Novartis India Ltd (4 tablets for Rs 99.84), and Phenergan Syrup manufactured by Nicholas Piramal India Ltd (Rs 22.96).

"It was observed that the price increase by more than 20 per cent during the relevant year was unjustified and against public interest. This puts unreasonable burden on the consumers," said the NPPA notification.

The authority took this decision on not finding the replies sent by the companies in response to showcause notices satisfactory.

"It is unfortunate that the government is voluntarily bringing more medicines under price control, when the pharmaceutical policy is still under the review of the government," said DG Shah, secretary general, Indian Pharmaceutical Alliance, an umbrella organisation of major Indian pharmaceutical firms.

"It is not surprising as the government has powers under Clause 10 (b) of the DPCO to intervene if prices of medicines are hiked beyond the stipulated levels," said Daara Patel, secretary general, Indian Drug Manufacturers' Association.

The NPPA had, a few months ago, stated that it had issued showcause notices to the manufacturers of 341 medicines on complaints of charging unreasonably high prices.

While companies reduced the prices of 49 drugs voluntarily, the NPPA had sent a second letter to the companies asking why action should not be taken against them under the public interest Clause 10 (b), an NPPA official said.