NPPA to enforce 5% cut in prices of 75 drugs

The National Pharmaceutical Pricing Authority (NPPA) is set to enforce a 5 per cent cut in the prices of over 75 commonly-used medicines like ibuprofen, riifampicin, insulin, erythrymocin and vitamins, within two weeks.

The NPPA's move is aimed at passing on benefits of reduction in the Customs duty on basic chemicals and active pharmaceutical ingredients (APIs) announced in the Budget to the consumer.

The authority on March 21 notified revised prices of 34 APIs where Customs reduction was in the range of 5-7.5 per cent. Companies using these APIs as ingredients in their medicines will have to make proportionate reduction in the prices of their drugs within 15 days of notification.

The NPPA also plans to issue a detailed notification identifying the revised ceiling prices for all 75 medicines soon.

The NPPA's decision may compel all major pharmaceutical companies like Nicholas Piramal, Cipla, Workhardt etc to revise their medicine prices.

According to NPPA sources, the reduction in Customs duty has not only reduced the prices of several medicines, but also resulted in nullifying the chances of an upward revision in a large number of cases.

India imports around Rs 2,000 crore worth APIs for use in medicine production. The Customs duty benefit on these products will now be passed on to the consumer.

The APIs whose prices have undergone downward revision include frusemide, nalidixic acid, chloroquine phosphate, carbamezapine, salbutamole sulphate, cefadroxyl and dextropropoxyphene prednisolone cefotaxime etc.