NPPA’s role in fixing drug prices?

  Apr 26, 2022

NPPA’s role in fixing drug prices?

Q What is the context  ?

A Consumers may have to pay more for medicines and medical devices if the National Pharmaceutical Pricing Authority (NPPA) allows a price hike of over 10% in the drugs and devices listed under the National List of Essential Medicines (NLEM), this coming month.

Q Who regulates Drugs prices?

  1. To implement and enforce the provisions of the DPCO in accordance with the powers delegated to it
  2. To deal with all legal matters arising out of the decisions of the NPPA
  3. To monitor the availability of drugs, identify shortages and to take remedial steps

Q How does the pricing mechanism work?

As per the Drugs (Prices) Control Order 2013, scheduled drugs, about 15% of the pharma market, are allowed an increase by the government as per the WPI while the rest 85% are allowed an automatic increase of 10% every year.

Q How are the prices determined?

Q When are the prices revised?

Q Why are inputs costs high?