Pharma regulator NPPA warns industry of stricter price action

Within the sector, there has been a buzz that the draft policy has been put in the cold storage because of opposition from industry

The National Pharmaceutical Pricing Authority (NPPA) has warned the pharmaceutical industry of stricter price regulation, a move which could weaken sales growth of the sector.

“The pricing regime will be strict than what it is so far. The government is answerable to the people,” NPPA Chairman Bhupendra Singh said at an Indian Drug Manufacturers Association event in Mumbai on Saturday. He did not specify the proposed actions.

The move comes in the backdrop of government scrutiny of industry practices which found excessive trade margins and exorbitant drug prices among others.

Singh said trade margins for 25 per cent of drugs sold in the