Here’s How It Could Impact Your Medical Costs
The National Pharmaceutical Pricing Authority (NPPA), the country’s top drug pricing regulator, has set prices for 71 formulations, including several diabetes medications and a widely used cancer treatment. The pricing was done under the provisions of the Drug (Prices Control) Order (DPCO), 2013.
NPPA has fixed individual prices based on specific combinations, dosages, and manufacturers.
What are the drugs for which prices are fixed?
Among the 71 formulations for which the NPPA has fixed prices are several anti-diabetic drugs and their combinations. These include formulations containing Empagliflozin, an anti-diabetic drug that went off-patent earlier this year, combined with older medicines listed under the Drug (Prices Control) Order (DPCO). Since these are scheduled drugs, the NPPA has the authority to regulate their prices. The cost of these anti-diabetic combination medicines now ranges between Rs 14 and Rs 31 per tablet.
The NPPA has also set the price of the anti-cancer drug Trastuzumab, manufactured by Reliance Life Sciences, at Rs 11,966 per vial. Trastuzumab is listed in the National List of Essential Medicines, making it eligible for price control.
In addition, the price of antibacterial Ceftriaxone combinations has been fixed between Rs 515 and Rs 1,036 per vial. The NPPA has also regulated prices for various paracetamol formulations — for instance, a suspension form is priced at Rs 0.66 per ml. A suspension of mefenamic acid, commonly used to treat menstrual pain, has been priced at Rs 0.94 per ml.
How Are Medicine Prices Controlled in India?
In India, the prices of medicines are regulated by the National Pharmaceutical Pricing Authority (NPPA) under the provisions of the Drug (Prices Control) Order (DPCO). The DPCO empowers NPPA to set ceiling prices for scheduled medicines, which are drugs listed in the National List of Essential Medicines (NLEM). These medicines are selected by the government based on their importance in addressing the most common and pressing health needs of the population.
The latest NLEM 2022 includes 384 medicines, with 34 new additions and 26 deletions from the previous list. For these scheduled medicines, NPPA fixes prices by calculating the average price to retailers for all brands that hold more than 1% of the market share, then adds a small margin. These prices are revised annually based on the Wholesale Price Index (WPI), which reflects changes in the cost of wholesale goods.
Can NPPA Fix Prices of Non-Scheduled Drugs?
While non-scheduled drugs (those not listed under the DPCO) don’t require direct price approval from NPPA, the authority still monitors their prices. Manufacturers of such drugs are allowed to increase prices by up to 10% annually. If NPPA finds unjustified pricing or excessive hikes, it can intervene and take corrective action to protect consumer interests.