NPPA revises the ceiling prices of eight scheduled drugs to meet the twin objectives of availability and affordability
- October 18, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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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.
- Manufacturers have requested price revisions due to:
- 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.