Prices of essential medicines cut by 30-50%

NEW DELHI: Drug price regulator National Pharmaceutical Pricing Authority (NPPA) has slashed the prices of around 33 essential medicines, bringing down their retail prices by 30-50%.
This includes anti-allergics used for common cold and cough, antibiotics and drugs used to treat ulcerative colitis, arthritis, psoriasis, gastroesophageal reflux disease (Gerd) and tuberculosis.

“Manufacturers not complying with the ceiling price and notes specified herein above shall be liable to deposit the overcharged amount along with interest thereon under the provisions of the Drugs (Prices Control) Order, 2013 read with Essential Commodities Act, 1955,“ the regulator said in a notification.

The move aims at reducing the prices of commonly used drugs for critical diseases by expanding the span of price regulation to cover new drugs.

The 33 drugs have been divided into two categories.While the regulator has brought 11 new drugs under price control, prices of 22 new drugs whose prices were already capped have been further reduced. All the 33 drugs are part of the revised National List of Essential Medicines, 2015. The health ministry had come out with the new list in December increasing the span of price control from 684 to 875 medicines. The NPPA has so far capped prices of 627 drugs since April last year. The idea is to make treatment of critical diseases more affordable by bringing down the cost of medicines, which constitute a major part of the total health expenditure.

In rural India, almost 80% of the out-of-pocket expenditure is on medicines, whereas in urban areas it is around 75%. The new drugs brought under price control include cetirizine, omeprazole and cefixime. According to the regulator, prices of these medicines have been fixed on priority because these are commonly used and are new to the list.