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(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