Lok Sabha Question No. 25 (STARRED), answered on 2016-04-26
Subject: Pricing Norms of Drugs/Medicines
Ministry: CHEMICALS AND FERTILIZERS
Asked by: SUNIL BALIRAM GAIKWAD, GAJANAN CHANDRAKANT KIRTIKAR

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

## LOK SABHA

## STARRED QUESTION No. 25

## TO BE ANSWERED ON THE 26 th  April, 2016

## Pricing Norms of Drugs/Medicines

- *25. DR. SUNIL BALIRAM GAIKWAD:

SHRI GAJANAN KIRTIKAR:

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

- (a) the details of  pricing  norms fixed for sale of drugs and medicines along  with  mechanism  in  place  to  penalise  those  violating  the pricing norms;
- (b) whether  a  number  of  drug companies  including  MNCs,  have reportedly been found to be overcharging the customers recently, if so, the details of such companies and action taken thereon;
- (c) whether the National  Pharmaceutical  Pricing  Authority  (NPPA)  has proposed  some  changes  in  the  existing  Drug  Price  Control  Order, 2013  so  as  to  arm  itself  with  powers  to  impose  fine  on  those violating pricing norms and if so, the details thereof;
- (d) whether the Government has taken on board various stakeholders including industry representatives from the civil society and public health groups to deliberate on the proposal; and
- (e) if so, the details thereof and the response of the different stakeholders in this regard?

## ANSWER

## MINISTER IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI ANANTH KUMAR)

- (a) to (e): A statement is laid on the Table of the House.

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## Statement referred to reply to LOK SABHA STARRED QUESTION No. 25  TO  BE  ANSWERED  ON  THE  26 th   April,  2016  regarding  Pricing Norms of Drugs/Medicines (5 th  Position)

- (a) The Department of Pharmaceuticals has notified the National Pharmaceutical Pricing Policy-2012  under which the prices of current National  List  of  Essential  Medicines  (Presently  NLEM,  2015)  are  to  be controlled & regulated on the basis of Simple Average Price of all the brands having market share (on the basis of Moving Annual Turnover) more than and equal to 1% of the total market turnover of that medicine. The Drug Price  Control  Order,  (DPCO)  2013,  contains  adequate  provisions  through which any manufacturer selling their products at a higher price shall be liable to deposit the overcharged amount along with interest thereon from the date of such overcharging.
- (b) National  Pharmaceutical  Pricing  Authority  (NPPA)  has  informed  that during 2015-2016  demand  notices  raised  and  receipt of  overcharged amounts is as under:
- (c), (d) & (e) The  Government  receives  various  suggestions  from  the stakeholders  including  NPPA  regarding  various  provisions  of  DPCO,  2013. The final view on the same is taken after consulting all the stakeholder and on the merits of the proposals which is an ongoing process.

| No. of Companies   | No. of Companies   | No. of Companies   | Demand Notice issued (Rs. in crore)   | Demand Notice issued (Rs. in crore)   | Demand Notice issued (Rs. in crore)   | Recovery effected (Rs. in crore)   | Recovery effected (Rs. in crore)   | Recovery effected (Rs. in crore)   |
|--------------------|--------------------|--------------------|---------------------------------------|---------------------------------------|---------------------------------------|------------------------------------|------------------------------------|------------------------------------|
| DPCO, 1995         | DPCO, 2013         | Total              | DPCO, 1995                            | DPCO, 2013                            | Total                                 | DPCO, 1995                         | DPCO, 2013                         | Total                              |
| 159                | 104                | 263                | 907.84                                | 20.48                                 | 928.32                                | 7.96                               | 4.72                               | 12.68                              |