Prices of crucial drugs likely to be slashed by up to half: Report

Prices of crucial drugs likely to be slashed by up to half
The National Pharmaceutical Pricing Authority (NPPA) is set to notify revised prices of as many as 150 essential medicines in line with the new pharma pricing policy. Once the notification comes, experts expect prices of key cancer drugs, antibiotics and medicines will become cheaper by up to 50 per cent.

The prices of antibiotics will see a major change. The range of price cut in antibiotics will be 15-50 per cent, depending on strength of the medicine. For instance, the MRP of paracetamol, a key analgesic used for pain relief, would drop 25-55 per cent. While paracetamol injection will get 25 per cent cheaper, prices of syrups and tablets will fall 35 and 55 per cent, respectively.

The price revision is in line with the Drug Price Control Order (DPCO), 2013, recently notified by the government, which mandates NPPA to cap prices of 348 essential medicines based on an arithmetic average of all drugs in a particular segment that have market share of more than one per cent. The new formula also doesn't allow companies to raise prices, if they are already below the cap.

Drug makers will have 45 days from the date of notification to replace the existing stock with new packs carrying revised MRPs.

Read more about: pharma, drugs, npaa
Story first published: Monday, June 17, 2013, 9:40 [IST]
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