(The Gist of PIB) National Pharmaceutical Pricing Authority brings 80 plus medicines under Price Regulation
(THE GIST OF PIB) National Pharmaceutical Pricing Authority brings 80 plus medicines under Price Regulation
National Pharmaceutical Pricing Authority brings 80 plus medicines under Price Regulation
To make these medicines more affordable, National Pharmaceutical Pricing Authority (NPPA) decided to regulate these as per provisions of Drugs Prices Control Order (DPCO) 2013.
NPPA is an independent body of experts in the Ministry of Chemicals and Fertilisers (MoCF) for regulating medicine prices.
DPCO was issued by MoCF under Essential Commodities Act, 1955 to regulate prices for essential and lifesaving medicines.
DPCO follows a market-based pricing mechanism. The ceiling price is worked out based on average price of all brands having at least 1 percent market share of the total market turnover of that drug plus a notional 16 percent retailer’s margin.
These Price controls are applicable to “Scheduled drugs” or “Scheduled formulations” (medicines which are listed out in Schedule I of DPCO).
Separately, Ministry of Health and Family Welfare draws up a National List of Essential Medicines (NLEM).
These medicines, deemed essential for the treatment of common conditions, automatically come under price control under DPCO.
However, under DPCO, the government has special powers to bring any item of medical necessity under price controls.