NPPA revises the ceiling prices of eight scheduled drugs to meet the twin objectives of availability and affordability

Sub : Sci

Sec: Health

Context:

The National Pharmaceutical Pricing Authority (NPPA) has approved a 50% increase in the ceiling prices of eleven essential formulations from eight different drugs.
Drugs Affected: These drugs are primarily low-cost and widely used as first-line treatments for conditions such as asthma, glaucoma, thalassemia, tuberculosis, and mental health disorders. They play a crucial role in public health programs.

Reason for the Price Hike:

To ensure the availability of essential drugs at affordable prices.
The NPPA emphasised that price regulation should not make these drugs unavailable in the market, which would jeopardise public health.
Factors Behind the Increase:
- Manufacturers have requested price revisions due to:
  - Rising costs of active pharmaceutical ingredients (APIs).
  - Increased production costs.
  - Changes in exchange rates.
- Some companies have even applied to discontinue certain formulations, citing financial unviability.
Legal and Policy Context:
- The NPPA invoked extraordinary powers under Paragraph 19 of the Drugs (Prices Control) Order (DPCO), 2013, to implement the increase.
Drugs with Revised Prices:
- Atropine injection (0.6 mg/ml).
- Streptomycin powder for injection (750 mg and 1000 mg).
- Salbutamol (tablet 2 mg and 4 mg; respirator solution 5 mg/ml).
- Pilocarpine (2% eye drops).
- Cefadroxil (tablet 500 mg).
- Desferrioxamine (injection 500 mg).
- Lithium (tablet 300 mg).
Previous Price Revisions:
- Similar price increases occurred in 2019 and 2021, where NPPA raised the prices of 21 and 9 formulations, respectively, to maintain the availability of these essential medicines.

About National Pharmaceutical Pricing Authority (NPPA):

Establishment: NPPA was established in 1997 as an independent body under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India.
Primary function: Its main role is to fix/revise the prices of controlled bulk drugs and formulations and to enforce prices and availability of medicines in India.
Key responsibilities:
- Implement and enforce the provisions of the Drugs (Prices Control) Order
- Monitor the availability of drugs
- Identify shortages and take remedial steps
- Collect and maintain data on production, exports, imports, and market share of pharmaceutical companies
Price control: NPPA fixes the ceiling price of essential medicines as per the National List of Essential Medicines (NLEM).
Drug Price Control Order (DPCO): NPPA implements the DPCO, which is an order issued by the government to regulate drug prices in India.
Consumer protection: It works to ensure that essential medicines are available at reasonable prices to consumers.
Authority: NPPA has the power to review prices of non-scheduled drugs and can take appropriate action if any medicine is deemed to be priced unreasonably.
Challenges: The authority often faces challenges in balancing the interests of pharmaceutical companies with those of consumers, and in ensuring drug availability while maintaining price controls.