Lok Sabha Question No. 324 (STARRED), answered on 2015-12-22
Subject: Drug Pricing Policy
Ministry: CHEMICALS AND FERTILIZERS
Asked by: RAVNEET SINGH

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

## LOK SABHA

## STARRED QUESTION No. 324

## TO BE ANSWERED ON THE 22 nd  December, 2015

## Drug Pricing Policy

*324. SHRI RAVNEET SINGH:

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

- (a) whether  the  Government  has  assessed  the  impact  of  current drug  policy  in  ensuring  drugs  to  consumers  at  affordable  price and if so, the details thereof;
- (b) whether  the  Government  proposes  to  review  the  current  drug pricing  policy  to  make  drugs  available  to  poor  patient  in  the country and if so, outcome thereof;
- (c) whether the views of the State Governments and other Stateholders have been considered before arriving at a common platform for pricing of drugs and if so, the details thereof; and
- (d) the  steps  taken/proposed  to  be  taken  by  the  Government  to ensure  MultiNational  Drug  Companies  market  their  products  at affordable prices for the common man?

## ANSWER

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

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

Xxxxx

## STATEMENT REFFERED TO IN REPLY TO PARTS (a) TO (d) OF STARRED QUESTION NO. 324 FOR REPLY ON 22.12.2015

(a): The National Pharmaceutical Pricing    Policy-2012 was notified on 7 th December  2012  and  subsequently  the  Drugs  (Prices  Control)  Order, 2013 was notified on 15 th  May 2013 under the provisions of which all the medicines  as  specified  in  strength/dosages  form  in  the  National  List  of Essential Medicines 2011 (NLEM) have been brought under price control.

(b) & (c): The Government has been reviewing/re-evaluating the policy whenever required in consultation with stakeholders and it is an ongoing process.

(d): The  provisions  under  National  Pharmaceutical  Pricing  Policy-2012 (NPPP-2012)  are  to  put  in  place  a  regulatory  framework  for  pricing  of essential drugs as per the strength and dosages as specified in National Lit of Essential Medicines-2011 which satisfy the priority healthcare needs of  majority  of  the  population.  Subsequently,  Drug  Price  Control  Order, 2013 (DPCO-2013) was notified by the Government. Under its provisions, National  Pharmaceutical  Pricing  Authority  (NPPA)  has  fixed  the  ceiling prices  in  respect  of  530  NLEM  medicines  under  scheduled  category  of DPCO, 2013 including 47 medicines for cancer and 22 for HIV medicines based on market price data under provisions of the said order.

In addition, maximum retail price (MRP) has been capped under para 19 of DPCO, 2013, in respect of 106 non scheduled medicines, out of which 84 are used for treatment of cardiovascular diseases and 22 for diabetes. NPPA has also fixed the retail price of 247 'new drugs' under para 5 of DPCO, 2013.

The reduction in price with respect to maximum price is as under:

| %reduction with respect to Maximum Price   |   No. of drugs |
|--------------------------------------------|----------------|
| 0<= 5%                                     |             80 |
| 5<=10%                                     |             50 |
| 10<=15%                                    |             57 |
| 15<=20%                                    |             43 |
| 20<=25%                                    |             65 |
| 25<=30%                                    |             49 |
| 30<=35%                                    |             26 |
| 35<=40%                                    |             34 |
| Above 40%                                  |            126 |
|                                            |            530 |