Lok Sabha Question No. 455 (UNSTARRED), answered on 2020-02-04
Subject: Pricing of Medicines
Ministry: CHEMICALS AND FERTILIZERS
Asked by: H. Vasanthakumar

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION NO. 455 TO BE ANSWERED ON 4 th  February, 2020

## Pricing of Medicines

## 455. SHRI VASANTHAKUMAR H.:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a)  whether  the  Government  is  planning  to  give  greater  focus  and  thrust  on  the development  of  pharmaceutical  sector  in  the  country  and  to  regulate  various complex issues related to pricing and availability of medicines at affordable prices;
- (b) if so, the details thereof and the steps taken/being taken by the Government so far; and
- (c) whether the Department has been mainly divided on Pricing through NPPA and if so, the details thereof?

## ANSWER

## MINISTER IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI D. V. SADANANDA GOWDA)

(a) & (b): Yes, Sir. National Pharmaceutical Pricing Authority (NPPA) deals with a scheme i.e. 'Consumer Awareness, Publicity and Price Monitoring' Scheme. The Plan  Scheme  has  two  components  viz.,  (a)  National  component  and  (b)  State component.  The  national  component  covers  the  expenditure  for  publicity  through print and electronic media, organizing seminars for consumer awareness, purchase of samples etc.

Under the State Component of the Scheme, NPPA sets up Price Monitoring and Resource Units (PMRUs) which are registered societies under the Chairmanship of the State Drug Controller, representatives of NPPA/State Health Department, civil societies and other stakeholders. PMRUs are the key collaborating partners of NPPA with  information  gathering  mechanism  at  the  grass  roots  levels.    PMRUs  create public  awareness  so  that  benefits  of  the  Drugs  (Prices  Control)  Order  (DPCO)  to trickle down to the grassroots levels.

Further,  National  Pharmaceutical  Pricing  Authority  (NPPA)  has  taken  the following steps for making medicines available at affordable price:

- (i) NPPA  fixed  the  ceiling  prices  of  530  scheduled  formulations  under National List of Essential Medicines, 2011 (NLEM, 2011).
- (ii) NPPA  has  notified  the  ceiling  prices  of  860  scheduled  formulations under NLEM, 2015.

(iii) NPPA fixed prices of 106 Anti-diabetic and Cardiovascular drugs under Para  19  of  Drugs  (Prices  Control)  Order,  2013  (DPCO,  2013)  in  Public interest.

(iv) NPPA  has  fixed  ceiling  price  of  Cardiac  Stents  being  scheduled formulation under DPCO, 2013 affecting price reduction for Coronary Stents worked out up to 85% for Bare Metal Stents and 74% for Drug Eluting Stents .

(v) NPPA has fixed ceiling price of Orthopedic Knee Implants under Para 19 of DPCO, 2013 in Public interest affecting  price reduction for orthopedic Knee Implants worked out up to be 69%.

(vi) NPPA capped the Trade Margin of non-scheduled formulations of 42 select Anti-cancer medicines under 'Trade Margin Rationalization' approach as  a  Pilot  for  proof  of  concept,  wherein  price  of  above  500  brands  of medicines were reduced upto 90%.

The fixation of  prices has  resulted  in  a total  saving  of  Rs.  12,447  crore  per annum to the public after implementation of DPCO, 2013.

- (c): No, Sir.

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