NPPA fixes retail prices for 40 formulations
The authority has fixed prices for 40 different formulations produced by 12 manufacturers which applied for the same by submitting Form-I for price fixation/revision as stipulated under DPCO, 2013
The National Pharmaceutical Pricing Authority (NPPA), a price monitoring competent agency, has fixed the retail prices of 40 formulations under the provision of the Drugs (Prices Control) Order (DPCO) 2013.
There are a total number of 12 manufacturers whose prices for 40 different formulations have been capped under the DPCO 2013. Mylan Laboratories lead the list, with its 17 formulations included in the price control. It is followed by Cadila Healthcare and Sun Phrama with four formulations each; Zydus Healthcare with three formulations; Micro Labs, Intas Pharmaceuticals and Cipla with two formulations each; and one formulation each by Torrent Pharmaceuticals, Win Medicare and USV.
Dr Amit Rangnekar, Chairman- Pricing Committee, IDMA said, “Vide SO 1674E dated 28th May, the prices of 40 formulations have been fixed under the DPCO 2013. These formulations are called as ‘New Drug’ under para 2 (u) and their prices are fixed under Para 15 (2) of DPCO. These are combinations of a scheduled formulation with another drug listed or unlisted in the NLEM, for which price approval is sought under Form I by existing manufacturers of that scheduled formulation. This notification will ensure affordable medicines for Indians in important chronic therapies to treat diabetes and hypertension.
DC Jain, Chairman, Akums Drugs and Pharmaceuticals informed, “Out of the 40 retail price fixed formulations, 24 formulations are manufactured by the contract manufacturing firms and 16 by the companies themselves. It is noteworthy that our company Akums Drugs manufactures 20 formulations on contract manufacturing, and therefore with this price fixation, we may see more business coming to us.”
The NPPA has directed to the above mentioned manufacturers to fix the retail price as specified in the notification. In its directive, it has permitted the manufacturer to add to the price the fraction for the goods and services tax, provided, they have paid for it or it is payable to the
government on the retail price announced by the price fixing authority.
It has also communicated that as per the provisions contained in paragraph 11 of the DPCO, 2013, the retail price for a pack of the formulation should come from the concerned manufacturer in accordance with the retail price specified.
The notification issued by the NPPA also mentioned that as per paragraph 24 of the DPCO, 2013, manufacturers also need to issue a price list in Form–V, from the date of notification to the NPPA through Integrated Pharmaceutical DataBase Management System (IPDMS) and submit a copy to the State Drug Controller and dealers.
The retail prices of 40 formulations are applicable only to the individual manufacturer/marketer who have applied for the same by submitting Form-I for price fixation/revision as stipulated under DPCO, 2013 and it is subject to fulfillment of all the applicable statutory requirements as laid down by the government under relevant statutes/rules, including manufacturing license permission from the competent authority i.e. the Central/State