Pharma firms told to give drug price details

Pharmaceutical companies may attract penal action if they do not provide the drug price regulator with the latest pricing details of all the medicines sold by them.

The National Pharma-ceutical Pricing Authority (NPPA) had written to companies to furnish a consolidated price list for their products within 15 days.

“The submission of the price lists by the companies is mandatory. It is, however, noted that your company is not submitting their price list or supplementary price list regularly,” the drug price regulator said in the letter, sent to companies earlier this month.

The move, aimed at ensuring availability of medicines at affordable prices, comes in the wake of changes in the excise duty in the Union Budget 2012-13, along with changes in value added taxes in some states recently, an NPPA official said.

 

“In the Union Budget, government had enhanced the excise duty from five to six per cent. In many states, percentage of VAT also varied from four to five per cent. Therefore, it is necessary for the manufacturer to submit price list by incorporating the change with respect to excise duty and VAT,” the NPPA letter said.

The drug pricing authority directly regulates prices of 74 bulk drugs and all medicines containing one or more of these bulk drugs. To revise the price of any such drug, companies have to seek prior approval from the NPPA. Besides, drug makers are also required to seek NPPA’s permission to raise the price of any other medicine beyond 10 per cent annually.

NPPA monitors prices of medicines based on the cost data provided by the companies and through its own market surveillance.

While the latest move is likely to help the regulator revise prices of medicines accordingly, it would also enable it to keep a tab on companies passing on undue hikes to consumers.

NPPA had also written to various industry bodies, such as Organisation of Pharmaceutical Producers of India and Indian Drug Manufactures’ Association along with state drug controllers, to ensure that all companies, including small scale drug manufacturers, comply with the norm.