New Delhi, 20 May, 2013:
With the new Drug Price Control Order is in force setting the norms for
fixing the prices of essential medicines, the first batch of revised
prices is likely to be announced within a couple of weeks time.
The National Pharmaceutical Pricing Authority (NPPA), the agency
responsible for fixing the prices, is learnt to have already started the
process of revising the prices as per the new norms and the first batch
with new prices may be announced this month itself.
As per the new Pharmaceutical Pricing policy, already notified by
the Government, the NPPA has to fix prices of 652 formulations, which
will serve as the benchmark for companies. The prices will be fixed on
market-based mechanism.
“The DPCO 2013 was ready for some time now and it has given time
for NPPA to begin the process already so that the effect of the policy
could be made felt in the market at the earliest. The manufacturers will
be given 45 days to clear the old stocks and implement the new rates
after fixation,” sources in the Department of Pharmaceuticals (DoP)
said.
The NPPA has already been gathering market data regularly for
monitoring from IMS Health and the same data will be the base for fixing
the prices. As per the DPCO, the agency can validate such data through
survey or evaluation.
“The Government may in the due course of time come out with other
appropriate mechanism of collecting or obtaining the market based data
related to drugs and the decision of Government with respect to
collection or obtaining of data shall be final. The market based data,
for fixing the ceiling price of scheduled formulations for the first
time after the notification of this order, shall be the data of May,
2012. The market based data for fixing the retail price of new drugs
available in the market, shall be the data available for the month
ending immediately before six months of receipt of application for
fixing the price of the new drug,” according to the Order.
The new policy has brought 348 essential drugs under price
control, against 74 specified in the earlier DPCO. Prices of 652
formulations thus will be fixed and they fall under 27 therapeutic areas
like anti-allergic (cetrizine), cardiac (aten), gastro-intestinal
medicines (ocid), pain-killers (paracetamol) and anti-diabetic drugs
(insulin) are expected to come down. Others in the list include
anti-fungal, anti-tuberculosis, anti-leprosy, anti-hypertensives and
cancer drugs.
The government on Thursday notified DPCO 2013 with effect from
May 15, replacing the 1995 order. It was issued under the Essential
Commodities Act, 1955, laying down the mechanism for regulating the
prices.
While giving the formula of fixing the prices, the DPCO has fixed
16 per cent as the margin for retailers in the case of new drugs. “The
maximum retail price of scheduled formulations shall be fixed by the
manufacturers on the basis of ceiling price notified by the Government
plus local taxes wherever applicable, as Maximum Retail Price = Ceiling
Price + Local Taxes as applicable. The maximum retail price of a new
drug shall be fixed by the manufacturers on the basis of retail price
determined by the Government plus local taxes wherever applicable, as:
Maximum Retail Price = Retail Price + Local Taxes as applicable,” the
order said.
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