The National Pharmaceutical Pricing Authority (NPPA) has decided to fix the prices of 50 anti-diabetic and cardiac medicines. While it will help the consumers, it will also affect the pharma companies' margins as the price reduction ranges from 10-35 %. The Government had revised the Essential Medicines List last year, bringing 348 bulk drugs and 652 drug formulations under price control. This notification brings drugs outside the list within the price control regime.
The Drug Prices Control Order (DPCO), 2013, allows the NPPA to fix a price ceiling on any drug for a period if considered necessary in public interest. Consequently, the prices of key medicines, including Gliclazide, Pioglitazone, Amlodipine, and Heparin, will be capped like the prices of the medicines on the essential list. As such, if the price of a drug is 25 % higher than the average price of other drugs, its price will be capped at the 25 % for all the medicines in that group.