The National Pharmaceutical Pricing Authority (NPPA) has approved a 50% increase in the ceiling prices of 11 formulations for eight critical drugs, aiming to ensure the uninterrupted availability of these medicines while maintaining affordability. This decision, taken at the full Authority meeting on October 8, 2024, reflects NPPA’s ongoing efforts to support sustainable drug production amidst rising input costs.

Focus on Essential Drugs Vital to Public Health

The revised formulations encompass a range of first-line treatments essential to addressing critical health conditions such as asthma, tuberculosis, thalassemia, glaucoma, mental health disorders, and more. Many of these medicines are fundamental to India’s public health programs, underscoring the importance of their availability.

NPPA invoked extraordinary powers under Para 19 of the Drugs (Prices Control) Order (DPCO), 2013, ensuring public interest remains a priority. The Authority highlighted that price regulation must balance two core objectives:

1. Affordability for patients, especially for those relying on public health systems.
2. Sustainable production to prevent market shortages due to unviability.

Revised Ceiling Prices for 11 Key Formulations

The approved price revisions apply to the following formulations, which are widely used across the country:

• Benzyl Penicillin Injection (10 lakh IU)
• Atropine Injection (0.6 mg/ml)
• Streptomycin Powder for Injection (750 mg and 1000 mg)
• Salbutamol (2 mg & 4 mg tablets; 5 mg/ml respirator solution)
• Pilocarpine Eye Drops (2%)
• Cefadroxil Tablets (500 mg)
• Desferrioxamine Injection (500 mg)
• Lithium Tablets (300 mg)

These medicines represent cost-effective treatments often used as primary therapy options, making them indispensable for patients in both urban and rural healthcare settings.

Rationale Behind the Price Increase

NPPA’s decision was driven by manufacturers’ appeals, which cited a combination of factors making production unviable at existing prices. Key concerns included:

• Rising costs of Active Pharmaceutical Ingredients (API).
• Higher production expenses and fluctuating exchange rates.
• Risk of discontinuation of formulations by manufacturers due to losses.

The NPPA has a mandate to ensure access to essential drugs without compromising affordability, and thus this revision aligns with the goal of maintaining a steady supply in the market.

Also Read: Union Health Secretary Highlights India’s Global Leadership in Healthcare at the Annual India Leadership Summit 2024

A Strategic Move in Public Interest

This isn’t the first time NPPA has used its extraordinary powers under DPCO. Similar interventions were carried out in 2019 and 2021, when the prices of 21 and 9 formulations, respectively, were increased to guarantee their continued availability. NPPA reiterated that such measures are necessary to balance affordability and supply chain sustainability.

Safeguarding Access Through Proactive Policy

NPPA’s proactive revision of prices showcases the government’s commitment to preserving public health while addressing the operational realities of pharmaceutical manufacturers. Through such initiatives, India aims to minimize out-of-stock scenarios and safeguard its citizens’ access to life-saving medicines, particularly for chronic and severe health conditions.

This strategic revision will directly benefit India’s extensive public health efforts, ensuring that essential treatments remain available without interruptions.

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