Skip to main content

Drug price control mechanism in our country.

కనీసం  50 రకాల నిత్యావసర  మందులు సామాన్యుడికి కూడా అందు బాటులో ఉంచడం ప్రభుత్వ బాధ్యత . 

Which authority in our country fix /revise prices of drugs?
National Pharmaceuticals Pricing authority.(NPPP).

NPPA can decide the rates of medicines by Drug Prices Control Order (DPCO).
NPPA was fixed the prices of all the medicines in -National List of Essential Medicines
 (NLEM- 2011) & 106 other useful formulations  by the order dt.DPCO 2013. & another set of 50 cardiovascular and diabetes medicines by the order dt. july,10th.2014.

Previously,NPPA  followed cost-based price mechanism,where as now it is following market-based price fixation. 
This is evidence that there is still large  scope for significant reduction in NPPA ceiling prices, without affecting the reasonable profits of the industry.
We also note that the notifications have not included fixed dose combinations in the cardiovascular and diabetes therapeutic categories whereas the sales of many combinations exceed those of the single molecule medicines.
What is the turn-over value of retail medical market ?
 Rs.77,526 crores (Moving Annual Total, June 2014) .

How much loss the manufacturing companies would experience by these orders of NPPA?
 loss of  Rs. 350 crores (AIOCD-AWACS, PharmaTrac Data, 2014).
 loss of approximately only 2% (Rs. 112 crore) in the anti-diabetic therapy segment and 2.5% (Rs. 238 crore) in the cardiac therapy segment.
What NPPA should do to make medicines in reach of common man without disturbing the profits of manufacturers?
NPPA should come out with similar action to cover all dosage forms and fixed dose combinations containing one or more medicines under NELM, and as well as bring other essential and life saving medicines under price control immediately.

Comments