Lok Sabha Question No. 3 (STARRED), answered on 2015-07-21
Subject: Prices of Medicines
Ministry: CHEMICALS AND FERTILIZERS
Asked by: MANOJ RAJORIA, BHARAT SINGH

**GOVERNMENT OF INDIA**

**MINISTRY OF CHEMICALS & FERTILIZERS**

**DEPARTMENT OF PHARMACEUTICALS**

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LOK SABHA

STARRED QUESTION NO. 3

TO BE ANSWERED ON 21 st July, 2015

**Prices of Medicines**

*3. 	DR. MANOJ RAJORIA:

SHRI BHARAT SINGH:

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

(a)	the criteria/guidelines laid down by the Government/National Pharmaceutical     Pricing Authority (NPPA) in determining and fixing the prices of essential medicines including medicines for treatment of cancer and ailments related to heart and kidney, diabetes, HIV;

(b)	whether the prices of essential medicines and other drugs have increased manifold;

**(c) 	if so, the details thereof and the reasons therefor;**

**(d)	the steps taken/being taken by the Government to control/reduce the prices of the medicines and the success achieved therefrom during each of the last three years and the current year; and**

(e)	whether the Government proposes to direct the drug manufacturing  companies to disclose prices of all medicines on website and if so, the details thereof?

**ANSWER**

**MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS                        (SHRI HANSRAJ GANGARAM AHIR)**

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

Statement referred to in reply to Lok Sabha Starred Question No. 3 for answer on 21/07/2015 regarding prices of medicines

(a) to (d):	National Pharmaceuticals Pricing Authority (NPPA) fixes the prices of essential medicines as per the provision of Drugs & Price Control Order (DPCO) 2013. NPPA has fixed ceiling price of 530 essential medicines. These also include medicines used for treatment of cancer, cardiovascular / heart disease, kidney disease, diabetes, HIV etc. specified in the Schedule-I of DPCO, 2013.

The reduction in prices effected as compared to the highest price prevailed prior to fixation of ceiling prices is as follows:

| % 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 |

In addition, NPPA vide price notifications dated 10.07.2014 capped the maximum retail price (MRP) of 106 non-scheduled single ingredient drug formulations related to treatment of diabetes and cardiovascular diseases, under para 19 of the DPCO, 2013. The price notifications have been challenged in the Delhi High Court and Bombay High Court where the matter is sub-judice.The Government has defended the price notifications in both the Courts. A large number of manufacturers have already implemented the price reduction and the price notifications of 10.07.2014 issued by the NPPA are still in operation.

The reduction in prices effected as compared to the highest price prevailed prior to price capping of these 106 formulations is as follows:-

| % reduction with respect to Highest prevailing MRP (No. of Drugs)   |          |                |       |
|---------------------------------------------------------------------|----------|----------------|-------|
|                                                                     | Diabetic | Cardiovascular | Total |
| 0 <= 5%                                                             | 7        | 10             | 17    |
| 5 <= 10%                                                            | 2        | 10             | 12    |
| 10 <= 15%                                                           | 1        | 11             | 12    |
| 15 <= 20%                                                           | 1        | 8              | 9     |
| 20 <= 25%                                                           | 2        | 12             | 14    |
| 25 <= 30%                                                           | 2        | 7              | 9     |
| 30 <= 35%                                                           | 2        | 7              | 9     |
| 35 <= 40%                                                           | 1        | 4              | 5     |
| Above 40%                                                           | 4        | 15             | 19    |
| Total                                                               | 22       | 84             | 106   |

As provided in para13 of DPCO, 2013, all the existing manufactures of scheduled formulations, selling the branded or generic or both the versions of scheduled formulations at a price higher than the ceiling price (plus local taxes as applicable) so fixed and notified by the Government, shall revise the prices of all such formulations downward not exceeding the ceiling price (plus local taxes as applicable). Upward revision in the prices of scheduled formulations is permissible to the extent of increase in the Wholesale Price Index (WPI) for the particular year. In respect of non-scheduled medicines, price increase is permissible up to maximum limit of 10% annually.

NPPA monitors the prices of medicines under provisions of DPCO, 2013. Where any manufacturer sells a formulation at a price higher than the price permissible under the said order, such manufacturer shall be liable to deposit the overcharged amount along with interest thereon from the date of such overcharging.

(e) 	‘Pharma Price Data Bank’ (renamed as ‘Pharma Data Bank’), an Integrated Pharmaceutical Database Management System (IPDMS) has been launched on 25.06.2015 and all the drug manufacturing companies have been directed to file Form II, Form III and the price list in Form V under Schedule-II of the DPCO, 2013 , online in IPDMS to NPPA.

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