-
ALSO READ
Cipla, Ipca Lab, Zydus Life to benefit most from drug price rise: Analysts
WPI effect: 800 key drugs likely to see 10% price rise in April
Covishield, Covaxin prices likely to be capped at Rs 275 per dose
Demand for chronic drugs likely to rise 30% ahead of price hike
Credit Suisse downgrades India to underweight on soaring crude oil prices
-
The National Pharmaceutical Pricing Authority (NPPA) has fixed ceiling prices of over 870 formulations that are part of the National List of Essential Medicines (NLEM) through an order on March 30, allowing a 10.76 per cent rise linked to the Wholesale Price Index (WPI). This is the highest price rise allowed for scheduled drugs (those part of the NLEM) by the pricing regulator since the Drug Price Control Order, 2013, came into effect. The average increase in prices was 3.1 per cent in the past five years.
An analysis by Systematix Research showed that among the three components of growth for pharma companies — volumes, new product launches, and prices — price growth has taken over volume to become the largest growth driver.
Contribution of volume growth in overall Indian Pharmaceutical Market (IPM) has reduced significantly to 20 per cent in March 2020 versus 34 per cent in March 2016, while the price growth has contributed 55 per cent versus 34 per cent for the same period.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU