Lok Sabha Question No. 3713 (UNSTARRED), answered on 2020-03-17
Subject: Price Revision by NPPA
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Kaushalendra Kumar

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

LOK SABHA UNSTARRED QUESTION NO. 3713 TO BE ANSWERED ON 17 th  March, 2020

## Price Revision by NPPA

## 3713. SHRI KAUSHALENDRA KUMAR:

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

- (a)  whether  the  National  Pharmaceuticals  Pricing  Authority  (NPPA)  has  recently revised the pricing norms of 509 medicines out of Drug Price Control Order (DPCO) list and if so, the reasons for the same;
- (b) whether it is a fact that once price is revised, the drug prices would increase by more than 50 per cent of the current prices fixed by the Government;
- (c) if so, whether it would not be costing more to the consumers who are already in stress due to high inflation and price rise in essential commodities specially during the last six months period; and
- (d)  whether  it  is  also  a  fact  that  this  revision  has  been  done  by  NPPA  on  the demands of big pharma companies and if so, the details thereof?

## ANSWER

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

(a) to (c): No reference of revision of pricing norms for 509 medicines recently is available.  The  National  Pharmaceutical  Pricing  Authority  (NPPA)  has  received applications for upward price revision under para 19 of the Drugs (Prices Control) Order, 2013 (DPCO, 2013) citing various reasons like increase in Active Pharmaceutical Ingredient (API) cost, increase in cost of production, exchange rates etc.  resulting  in  unviability  in  sustainable  production  and  marketing  of  the  drugs. Based on the recommendation of Standing Committee on Affordable Medicines and Health Products (SCAMHP), ceiling price of shortlisted 21 scheduled formulations of 12 medicines were revised by allowing one time price increase of upto 50% from the present ceiling price in public interest as an exceptional measure by invoking para 19 of the DPCO, 2013.

A Committee comprising of Adviser (Cost), Adviser, DGHS and Deputy Drug Controller, DCGI under the convenorship of Director (Pricing, NPPA), examined such formulations  based  on  parameters  of  essentiality,  market  share  of  the  applicant company  and  available alternatives etc. It was  noted that these scheduled formulations are low priced drugs and have been under repeated price control. Most of these drugs are used as first line of treatment and are crucial to the public health program  of  the  country.  Many  companies  have  applied  for  discontinuation  of  the product on account of unviability. Therefore, these formulations were considered for upward  price  revision  to  enable  onward  manufacturing,  and  hence  continued availability to the consumers.

(d): The NPPA doesn't differentiate in big and small companies for upward price revisions.  Primarily  price  revision  has  been  undertaken  where  manufacturer  held large  market  share  and  any  discontinuation  on  ground  of  unviability,  would  have seriously impacted availability of the drug.

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