National Pharmaceutical Pricing Authority

The National Pharmaceutical Pricing Authority has approved a 50% increase in the ceiling prices of 11 scheduled formulations of 8 drugs. These drugs are essential to public health programs and are used for the treatment of diseases such as asthma, glaucoma, thalassemia, tuberculosis and mental heal

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Context

About National Pharmaceutical Pricing Authority (NPPA)

NPPA is a government regulatory agency in India that controls the prices of pharmaceutical drugs and ensures their availability at affordable rates.
Formation: It was established in 1997 as an independent body under the Department of Pharmaceuticals.
Nodal Ministry: Ministry of Chemicals and Fertilisers.
Legal Framework: It operates under the Drugs (Prices Control) Order (DPCO), which is issued under the Essential Commodities Act, 1955. The DPCO empowers the NPPA to regulate the prices of essential drugs to ensure their affordability and availability.
NPPA also administers the “Pharma Sahi Daam” and “Pharma Jan Samadhan” platforms for information on medicine prices and public grievance

Functions of NPPA

Fixing Prices of Essential Drugs: The NPPA sets the ceiling prices of drugs that are listed under the National List of Essential Medicines (NLEM). This ensures that essential medicines are accessible and affordable to the public.
Monitoring Drug Prices: It monitors prices of decontrolled drugs and formulations to prevent excessive pricing.
Enforcement: The NPPA ensures that pharmaceutical companies comply with the pricing regulations and penalises companies that violate the price caps.
Availability of Medicines: Ensuring the availability of essential medicines, even in remote areas, is another critical role of NPPA.

Reviewing Drug Prices: The NPPA reviews and revises prices based on changes in costs of production, such as raw materials and manufacturing expenses.