National Pharmaceutical Pricing Authority (NPPA)
- March 20, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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National Pharmaceutical Pricing Authority (NPPA)
Subject: Science & Tech
Context- Pharma lobby seeking a 10% increase for scheduled drugs listed under the National List of Essential Medicines (NLEM).
Concept-
How does the pricing mechanism work?
- Prices of Scheduled Drugs are allowed an increase each year by the drug regulator in line with the WPI.
- All medicines under the NLEM are under price regulation.
- As per the Drugs (Prices) Control Order 2013,
- scheduled drugs, about 15% of the pharma market, are allowed an increase by the government as per the WPI
- while the rest 85% are allowed an automatic increase of 10% every year.
About NPPA:
- The NPPA was set up in 1997 to fix/revise prices of controlled bulk drugs and formulations and to enforce price and availability of the medicines in the country, under the Drugs (Prices Control) Order, 1995-2013.
- Its mandate is to implement and enforce the provisions of the Drugs (Prices Control) Order in accordance with the powers delegated to it, to deal with all legal matters arising out of the decisions of the NPPA and to monitor the availability of drugs, identify shortages and to take remedial steps.
- The ceiling price fixed/revised by the NPPA is notified in the Gazette of India (Extraordinary) from time to time.
Functions of NPPA:
- To implement and enforce the provisions of the Drugs Price Control Order (DPCO), 1995/2013 in accordance with the powers delegated to it.
- To undertake and/or sponsor relevant studies in respect of pricing of drugs/formulations.
- To monitor the availability of drugs, identify shortages, if any, and to take remedial steps.
- To collect/maintain data on production, exports and imports, market share of individual companies, the profitability of companies etc. for bulk drugs and formulations.
- To deal with all legal matters arising out of the decisions of the Authority
- To render advice to the Central Government on changes/revisions in the drug policy.
- To render assistance to the Central Government in parliamentary matters relating to drug pricing.
Read More: https://optimizeias.com/national-pharmaceutical-pricing-authority-nppa/