Drug price watchdog National Pharmaceutical Pricing Authority (NPPA) has decided to
Channel: Doubtnut
Date: 09/05/2020

Drug price watchdog National Pharmaceutical Pricing Authority (NPPA) has decided to invoke the 'public interest' clause in the drugs law more often to pressure companies to reduce prices of medicines that go up more than `20%` in a year. The pricing body has also decided to limit its communication with companies to just one reminder asking them to respond to the show-cause notice on why the drug should not be recommended for price control, sources told ET. NPPA has now started scrutinising the fluctuations in the price-to-retailer of `48,600` formulation packs every month. Every month, two to three formulations are likely to get caught on an average. So far, NPPA has recommended `45` cases of  alleged abnormal price increase to the chemicals Ministry for appropriate action, on which the ministry has sent notices to `11` companies asking them to reduce prcies or face price control.  With reference to the above case, identify the element of marketing discussed.