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The government has issued a new drug pricing control order which effectively brings close to 200 more drug formulations under regulation. In December 2015, while issuing a new National List of Essential Medicines (NLEM), the government had added 106 and removed 70 medicines from the earlier one of 2011, expanding the list to 376, from 348.
Based on the new NLEM, the government on Thursday notified the Drug (Price Control) Amendment Order, 2016. It has about 820 formulations. There were 628 formulations under the Drug Price Control Order (DPCO) of 2013, notified in the wake of the NLEM of 2011.
By law, the government has to issue a new price control order – and the National Pharmaceutical Pricing Authority (NPPA) needs to subsequently set their ceiling prices - whenever there is a new NLEM. The NPPA, say officials, would decide in two to three months. Currently, it has set the ceiling prices of 530 drugs of the 628 formulations in DPCO, 2013. Of the 530, a price reduction of above 40 per cent has happened in 126 medicines; those of another 34 have come down by 35-40 per cent.
“The regulator has reduced the price of 26 medicines by 30-35 per cent, while prices of 49 drugs have been reduced by 25-30 per cent,” said minister of state for chemicals Hansraj Ahir in a reply to a question in Parliament earlier this month.
While the prices of 65 medicines have been reduced by 20-25 per cent, 43 medicines have seen a cut of 15-20 per cent, he'd added.
NPPA is mandated to fix or revise prices of controlled bulk drugs and formulations, and to enforce prices and availability of medicines in the country, beside monitoring prices of decontrolled drugs, to keep these at reasonable levels.
