The National Pharmaceutical Pricing Authority (NPPA) said drugmakers had been allowed to increase prices by up to 12.2 per cent of essential medicines from April 1, based on the change in the wholesale price index (WPI).
- The NPPA had been able to fix the ceiling prices of 651 medicines so far out of the over 870 scheduled drugs listed under the National List of Essential Medicines (NLEM). Even if the prices were to go up by 12.12% this year, the capping would help to offset the hike.
Key points
- A company can increase the price of medicines with effect from April 1, 2023, to the extent of 12.12% of the valid ceiling price of 651 essential medicines linked to Wholesale Price Index (WPI).
- But even if the company were to increase the price in full, an average reduction of 6.73% is estimated.
- Essential medicines are those that are part of the National List of Essential Medicines, and are called scheduled drugs.
- There are around 870 essential medicines in the NLEM.
- The NPPA said that out of this ceiling, prices have been fixed for 651 medicines, and as a result, there has been a 16.62 per cent cut in prices.
- Since the announcement of NLEM 2022 and consequent Schedule 1 Amendment ,NPPA , as per provisions of DPCO 2013 had revised the ceiling prices.
- According to the provision under the Drugs (Prices Control) Order, 2013, every year, pharma companies could increase or decrease the prices of medicines according to the WPI.
- But in November 2022, the government revised the list and prices of essential medicines.
- Under DPCO, 2013, the work of revising the applicable ceiling price of such notified drugs had been initiated by the NPPA, the government regulatory agency that controls the prices of pharmaceutical drugs in India.
- So far, new ceiling prices of 651 out of 870 essential medicines have been notified. Due to which the approved ceiling price of medicines has decreased by an average of 16.62%. As a result, consumers will save an estimated ₹3,500 crore annually,” the Minister said.
