Lok Sabha Question No. 1591 (UNSTARRED), answered on 2019-07-02
Subject: Price Check by NPPA
Ministry: CHEMICALS AND FERTILIZERS
Asked by: D.K. Suresh

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

LOK SABHA UNSTARRED QUESTION NO. 1591 TO BE ANSWERED ON 2 nd  July, 2019

## Price Check by NPPA

## 1591.  SHRI D.K. SURESH:

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

- (a) the  details  of  the  measures  taken  by  the  National  Pharmaceutical  Pricing Authority (NPPA) to check the prices of drugs under the Drugs Prices Control Order;
- (b) the number of cases where prices rose beyond the permissible limits; and
- (c) the impact of price rise on supply and production of drugs in the country?

## ANSWER

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

- (a) The  Following  measures  have  been  taken  by  the  National  Pharmaceutical Pricing  Authority  (NPPA)  to  check  the  prices  of  drugs  under  the  Drugs  (Prices Control) Order (DPCO):
- (i) After inclusion of National List of Essential Medicines (NLEM), 2011 in the  Schedule-I  of  DPCO,  2013,  NPPA  fixed  the  ceiling  prices  of  530 scheduled formulations.
- (ii) Schedule-I  of  DPCO,  2013  was  amended  by  adopting  NLEM,  2015. Accordingly, NPPA fixed the ceiling prices of 857 scheduled formulations.
- (iii) The  ceiling  prices  of  Coronary  Stent  were  notified  in  February,  2017 resulting into reduction in price up to 85%.
- (iv) NPPA has fixed the ceiling prices of the Orthopedic Knee Implants in August, 2017 under para 19 of DPCO, 2013, resulting in to reduction in price up to 69%.
- (v) NPPA  capped  the  maximum  retail  price  of  106  formulations  (antidiabetic and cardiovascular) under para 19 of DPCO, 2013 in July, 2014.
- (vi) Further,  NPPA  capped  the  prices  of  42  non-scheduled  anti-cancer medicines under 'Trade Margin Rationalization' approach. Accordingly, MRP of 526 brands of these medicines have shown reduction up to 90%.
- (vii) The price fixation measures have resulted in savings to the patients, as tabulated below:

| Particulars                                   | Saving to consumer (Rs. in Crores)   |
|-----------------------------------------------|--------------------------------------|
| Under NLEM 2011 from May, 2013 to Feb, 2016   | 2,422                                |
| Under NLEM 2015 from March, 2016 to till date | 2,644                                |
| Cardio vascular and Anti-diabetic medicines   | 350                                  |
| Coronary Stents                               | 4,547                                |
| Knee Implants                                 | 1,500                                |
| Anti-Cancer Drugs                             | 984                                  |
| TOTAL                                         | 12,447                               |

(b): Since  inception  of  NPPA  till  May,  2019,  2033  demand  notices  have  been issued to pharmaceutical companies for overcharging.

- (c): As per DPCO, 2013, price rise beyond permissible limit are not allowed and therefore has no correlation with supply and production of drugs.
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