In a move aimed at ensuring the continued availability of essential medications, the National Pharmaceutical Pricing Authority (NPPA) in India has increased the ceiling prices of eight key drugs by 50%. These drugs, crucial for treating a wide range of conditions including asthma, glaucoma, thalassemia, tuberculosis, and mental health disorders, have seen their maximum price limits raised to address concerns about dwindling production and supply.
The NPPA’s decision, announced in a statement on Monday, was made following a meeting on October 8th. The government highlighted that the majority of these drugs are low-cost and widely used as first-line treatments, playing a vital role in India’s public health programs. The revised ceiling prices apply to eleven formulations of these eight drugs, including Benzyl Penicillin IU injection, Atropine injection, Streptomycin powder for injection, Salbutamol tablets and solution, Pilocarpine drops, Cefadroxil tablets, Desferrioxamine injection, and Lithium tablets.
The NPPA cited applications from manufacturers requesting price increases due to escalating costs of active pharmaceutical ingredients, higher production expenses, and fluctuating exchange rates. These factors posed a significant challenge to the sustainability of drug production and marketing, leading to concerns about the availability of these essential medications. Furthermore, companies had sought to discontinue some formulations due to their limited availability.
This decision mirrors similar increases implemented in 2019 and 2021, where ceiling prices of 21 and nine formulations, respectively, were raised by 50%. The NPPA acknowledged that the previously low ceiling prices had resulted in financial losses for manufacturers, leading some to cease marketing these essential drugs. This shortage created difficulties for both patients and healthcare professionals. Dr. Viranchi Shah, National President of the Indian Drugs Manufacturers Association (IDMA), emphasized that the upward revision of ceiling prices is a welcome step, as it will help ensure the availability and accessibility of these crucial medicines for patients.
In India, the government exercises control over drug prices through the Drugs Prices Control Order (DPCO), 2013. This order establishes a maximum price limit, known as the Ceiling Price, for essential medicines and scheduled formulations. The Ceiling Price is adjusted annually based on the Wholesale Price Index (WPI) rate determined by the government. This move by the NPPA underscores the government’s commitment to balancing the need for affordable healthcare with the sustainability of the pharmaceutical industry in India.