NPPA brings 39 more medicines under price control
16 Jul 2015
The National Pharmaceutical Pricing Authority (NPPA) has extended price caps to 39 more medicines, ranging from commonly used diabetes drugs to antibiotics, in a bid to make more drugs affordable to ordinary people.
As per the NPPA notification, the price reduction will affect six companies having a market share of 1 per cent and above and involve a minimum alternate tax (MAT) value of Rs3.28 crore.
The price calculation is Rs28.76 for a pack of six, selling at a retail price of Rs4.79 with a retail margin of 16 per cent or (Rs0.77) of MRP (without local taxes) - a 5.56 per cent reduction compared to the highest price.
The move could impact drugmakers like Abbott Laboratories and GlaxoSmithKline Plc as also smaller firms, including Lupin Ltd, Cadila Healthcare Ltd and Ipca Ltd, all of whom sell drugs included in the new list.
A notice posted on the National Pharmaceutical Pricing Authority (NPPA) website late on Wednesday detailed the 39 new drugs, which extend a price control list that already includes more than 652 medicines.
New drugs added to the list include commonly used antibiotics such as azithromycin, combinations of metformin for diabetes, as well as the anti-emetic domperidone.