The Hindu Business Line : Pharma body may fix price for 10 additional drugs

The 20 odd cases that the NPPA had referred to the Government prior to being returned Para 10 (B) powers are now back with the Authority, which is hoping to clear all cases judged under the 20 per cent limit in 45 days.

Meera Mohanty

New Delhi, July 16 The National Pharma Price Authority is likely to fix the prices of an additional 10 formulations, outside of the list of essential medicines price-controlled by the Government.

The rates of these drugs, belonging to some of the leading pharmaceuticals in the country, have seen an increase of more than the 20 per cent limit allowed during a 12-month period.

The price monitoring body was earlier this year returned its powers under Para 10 (B) of the Drug (Price Control) Order 1995, by the Government to ‘fix’ prices of any non-scheduled drug in public interest.

Last month, nine years after it had last done so, the Authority called on the provision for 9 formulations from companies like Ranbaxy, Nicholas Piramal, Lupin and Novartis.

“Calling on Para 10 (B) is virtually like putting the formulation under price control,” points out an industry expert who did not want to be identified.

Revision form

Companies can voluntarily reduce the price of the drugs that have violated the 20 per cent cap. The new price then holds for the following six months.

However, prices fixed by the NPPA can only be revised on request from the company or suo motu by the NPPA alone.

The pharmaceutical industry is also unhappy about the fact that while the NPPA checks price increase with retrospect, the price it fixes for a violation of its norms, say for a period between 2004-2005, does not take into account the current market prices, or the subsequent increase that it would have been allowed.

An argument that does not move the NPPA, which has often complained of the grudging cooperation it receives from the industry.

Pending cases

Earlier this year, the Government also lowered the 20 per cent cap on price increase to 10 per cent.

The Government, which controls the prices of a list of 74 essential medicines, is proposing to extend price control to 354 drugs.

The proposal, fiercely fought by the industry, is a part of the Pharma Policy 2006 currently being reviewed by a Group of Ministers.