54 drug formulations ceiling price fixed by government

Pharma prices regulator NPPA has fixed ceiling price of 54 drug formulations used for treatment of cancer, diabetes rheumatoid arthritis, bacterial infections and hypertension. It has also fixed the retail price of 11 drugs. "National Pharmaceutical Pricing Authority (NPPA) has fixed/revised ceiling prices of 54 scheduled formulations of Schedule-I under Drugs (Price Control) Amendment Order, 2016 and Retail Price of 11 formulations under DPCO, 2013," the regulator said in a statement. Last month also it had fixed prices of some drug formulation packs. The government fixes the prices of essential drugs based on the simple average of all medicines in a particular therapeutic segment, having sales of more than 1 per cent. Besides, it regulates the prices of all other medicines, while companies are allowed to hike prices of such drugs by up to 10 per cent in a year.

The government had notified DPCO, 2013, which covers 680 formulations, with effect from May 15, 2014, replacing the 1995 order that regulated prices of only 74 bulk drugs.

Drug Pricing and Regulation

• In India, the Central Government fixes the prices of essential drugs based on the simple average of all medicines in a particular therapeutic segment, having sales of more than 1%.


• The drugs are brought under price control as part of its efforts to make medicines affordable in the country. Advertisement


• Besides, it also regulates the prices of all other medicines, while pharmaceutical companies are allowed to hike prices of such drugs by up to 10% in a year.

About National Pharmaceutical Pricing Authority (NPPA)

The National Pharmaceutical Pricing Authority (NPPA) is a government regulatory agency that controls the prices of pharmaceutical drugs in India.

The NPPA was formed on 29 August 1997. It has been given powers to implement and enforce the Drugs Price Control Order (DPCO), 1995/2013. It can fund studies regarding pricing of drugs. It also has the task to monitor drug shortages and take appropriate actions to rectify it. It also has to collect and maintain data regarding the import and export of drugs, market shares of pharmaceutical companies and their profits. It also handles legal disputes that arise out of policies created by it. It advices the Government of India in matters of drug policies and pricing.

• NPPA is nodal drug price regulator in India established in 1997.


• It functions under the Union Ministry of Chemicals and Fertilisers.


• It is entrusted with the task of fixation/revision of prices of pharma products, enforcement of provisions of the DPCO and monitoring of prices of controlled and decontrolled drugs.

• Formed: August 29, 1997


• Jurisdiction: India


• Headquarters: 3rd/5th Floor, YMCA Cultural Center Building 1, Jai Singh Road, New Delhi, India


• Agency executive: Bhupendra Singh, IAS


• Parent department: Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers

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