NPPA caps prices of 70 new drugs

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On March 29, the NPPA had capped the prices of 103 drug formulation packs, including those used for treating HIV/AIDS, bacterial infections, tuberculosis and high blood pressure

The National Pharmaceutical Pricing Authority (NPPA) has capped the prices of 70 new drugs. This is part of the new drug pricing control order notified on March 14, which effectively brings 200 more drug formulations under regulation.

Anti-cancer drug Rituximab, which is sold by just four companies in India, saw its price capped at Rs 704 for one unit (milli litre). Dr Reddy's has 50 per cent market share for this drug. Pneumonia drug Piperacillin/tazobactam, which has annual sales of Rs 368 crore in India, has its price capped at Rs 408 a unit (milli litre). Alkem Labs, Cipla, Macleods, Ipca Labs and Emcure Pharma produce this drug.

Bortezomib, another anti-cancer drug where the market is dominated by Emcure Pharma and Dr Reddy's, saw its price capped as well. Anti-malaria drug Artesunate, which has annual sales of Rs 106 crore in India, has got its price capped at Rs 194 a unit (milli litre).

Zolpidem, which is used to cure insomnia and certain brain disorders, now has a ceiling price of Rs 8 per tablet. Abbott controls 70 per cent of this drug's market. Zolpidem has annual sales of Rs 42 crore in India.

On March 29, the NPPA had capped the prices of 103 drug formulation packs, including those used for treating HIV/AIDS, bacterial infections, tuberculosis, high blood pressure, epilepsy, hepatitis C and diabetes.

In December 2015, while issuing a new National List of Essential Medicines (NLEM), the government had added 106 and removed 70 medicines from the earlier one of 2011, expanding the list to 376 from 348 earlier.

Based on the new NLEM, the government on March 14 notified the Drugs (Price Control) Amendment Order, 2016. It has about 820 formulations. There were 628 formulations under the Drug Price Control Order of 2013, notified in the wake of the NLEM of 2011.

Whenever there is a new NLEM, the government has to issue a new price control order and NPPA needs to set their ceiling prices subsequently.