Govt approves National Pharmaceutical Pricing Policy
The government has approved the National Pharmaceutical Pricing Policy (NPPP).
- The move will bring 348 essential drugs under price control and also lead to reduction in prices.
- The government at present controls the prices of 74 bulk drugs under the National Pharmaceutical Pricing Authority (NPPA). With the new NPPP, the Govt will control prices of 348 essential drugs.
- Thus, the price control shall now cover 348 drugs instead of just 74.
- NPPP also debars the companies from using the WPI (Wholesale Price Index) to increase the prices of the essential medicines on their own each year. The companies will now have to seek approval from the NPPA whenever they want to increase the prices of the items covered under the Drug Price Control Order.
- NPPP is expected to cover up to 30% of the total drugs sold in India.
- India’s domestic drug market valued at around $13 billion is the 4th-largest in the world by volume.