(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

[April-2021]

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.

About:

  • 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.

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Courtesy: PIB