NPPA invoked on DPCO 2013: Ceiling price of 21 key medicines raised by 50%

On 11th December 2019, The Government of India has invoked the Drug Price Control Order (DPCO) 2013, to increase the ceiling price of 21 medicines that are under DPCO price regulation. The revision has been made under Para 19 of DPCO 2013.

• Since 2 years, National Pharmaceutical Pricing Authority (NPPA) has been receiving applications regarding the increase in the price of the Active Pharmaceutical Ingredients (APIs) imported from China. After subsequent meetings, the Standing Committee on Affordable Medicines and Health Products (SCAMHP), the NITI Aayog has granted a one-time increase of 50% above the current ceiling price.

Drug Price Control Order (DPCO):

• The DPCO was issued by the Government under section 3 of the Essential Commodities Act 1955, the act enables the government to declare a ceiling price for essential medicines so as to make the medicines available at reasonable prices to the general public.
• The API prices have increased at a range of 5 to 88% depending on the products, they constitute 40 to 80% of the formulation cost of the medicine. Paragraph 19 of the DPCO 13 deals with the increase or decrease in the price of medicines under exceptional circumstances.
• Under this act the government has enabled the increase in the ceiling price of 21 key formulations, the key formulations include common medicines like BCG vaccine, penicillin, malaria and leprosy medicines (Dapsone), Furosemide (used for the treatment of fluid build-up due to heart failure), vitamin C, common antibiotics and anti- allergy medicines.
• The DPCO 2013 included 652 formulations under 27 therapeutic segments of the National List of Essential Medicines (NLEM).

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.

NPPA (National Pharmaceutical Pricing Authority):
Formation- 29 August 1997
Headquarters- New Delhi, India
Chairman- Shubhra Singh