Fri. Mar 29th, 2024

After two years of pharma industry’s lobbying for a price rise of active pharmaceuticals ingredients (API) and imported bulk drugs from China, the government has given nod to raise the prices of around 21 formulations, invoking the Drug Price Control Order, 2013, to ensure the availability in the market. The government has approved for a one-time increase of 50 per cent above the present ceiling prices on 21 formulations.

The notification issued by government says, ‘in the exercise of extraordinary powers in public interest, conferred by paragraph 19 of the DPCO, 2013”, the ceiling prices of 21 key formulations has been increased’.

These formulations include common life-saving medicines like BCG vaccines, penicillin, malaria and leprosy medicines, life-saving drugs like Furosemide –useful in treating the problems like fluid build-up due to heart failure, liver scarring, or kidney disease -, vitamin C, some common antibiotics, and anti-allergy medicines.

The active pharmaceuticals ingredients (API) prices cover-up around 40-80 per cent of the formulation cost which has gone up in the range of 5-88 per cent, depending on the products.

The pharma industry has been approaching the National Pharmaceuticals Pricing Authority (NPPA), price control authority of drug, for price rise giving the reasons like increase in API cost, increase in the cost of production and exchange rates, etc under the DPCO, 2013, for two years.

In January this year, the National Pharmaceuticals Pricing Authority held a meeting and considered 49 such applications about 72 formulations. After two months, a committee was set up for examining 19 such formulations based on parameters of essentiality. In a subsequent meeting, the NPPA shortlisted only 12 formulations and referred the issue to the Standing Committee on Affordable Medicines and Health Products (SCAMHP), the NITI Aayog, and the government for guidance on the modality and methodology to be followed for such cases.

The Standing Committee recommended allowing a one-time 50 per cent increase on 12 formulations along with directing the price control authority to consider any other additional formulations or molecules for price increases. In the next meeting, another nine formulations were considered for the price increase, and a total of 21 formulations was given approval on November 26.

The industry has welcomed this move of price-rise. “The move is in a positive direction and would ensure that the patient benefits by ensuring the availability of these drugs in the market. Whenever any drug is in short supply, the patient moves towards a costlier drug,” said expert from industry.

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