NPPA makes 33 fixed-dose combination drugs cheaper, brings them under regulation

The NPPA sets drug prices to create an organized pricing framework, aiming to guarantee the affordability of vital medications at reasonable rates.

India's drug pricing regulator National Pharmaceutical Pricing Authority (NPPA) has brought 33 more fixed-dose combination drugs under regulations, effectively making the drugs cheaper. The 33 drugs for which prices were fixed are manufactured by several drugmakers, including two each from JB Chemicals and Pharmaceuticals, Eris Lifesciences, Zydus Healthcare, Cipla, Sun Pharmaceutical, and Sanofi India, and one from Torrent Pharma.

The NPPA's latest decision will make these drugs cheaper, and manufacturers failing to comply with the price cap will need to reimburse the overcharged amount along with the interest.

The NPPA sets drug prices to create an organized pricing framework, aiming to guarantee the affordability of vital medications at reasonable rates.

NPPA also said every retailer and dealer needs to display a price list and a supplementary price list for easy accessibility to any person. Meanwhile, another notification released by the pricing regulator also stated that drug manufacturers are allowed to charge Goods and Services Tax (GST) only if they have made the payment or it is payable to the government on the retail price mentioned.

On the other hand, the Delhi High Court also issued an order, clarifying the government's authority over fixing the maximum retail prices of non-scheduled drug formulations.

The order was on account of complaints filed by several drugmakers over the demand notices issued to them by the NPPA on alleged overcharging of consumers with regard to select drugs.

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The court dismissed the argument that non-scheduled drugs are exempt from price control but emphasized their inclusion in a price "monitoring" mechanism. Nevertheless, the court specified that the government can just monitor the pricing but not set or adjust drug prices.

According to the ruling, if the Maximum Retail Price (MRP) exceeds a prescribed limit, the responsibility lies with the manufacturer to reimburse the excess amount with interest from the date of violation. In addition, the MRP of the non-scheduled formulation should then be reduced to 10 percent of the original MRP for the subsequent 12 months.

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