Government brings 42 non-scheduled cancer drugs under price control

Context

• The Union Government announced on February 27, 2019 that it has brought 42 non-scheduled anti-cancer drugs under price control, capping trade margin at 30 per cent, which would reduce their retail prices by up to 85 per cent.
• This was made possible after the National Pharmaceutical Pricing Authority (NPPA) invoked extraordinary powers in public interest, under Para 19 of the Drugs (Prices Control) Order, 2013 to bring 42 non-scheduled anti-cancer drugs under price control through trade margin rationalisation.
• The Department of Pharmaceuticals (DOP) stated in a notification that invoking paragraph 19 of DPCO, 2013 places a cap on trade margin of 30 per cent and directs the manufacturers to fix their retail price based on the price at first point of sale of the product of the non-scheduled formulations containing any of the 42 drugs.

Major facts

• According to NPPA’s available data, the MRP for 105 brands will be reduced up to 85 per cent resulting in a minimum saving of Rs 105 crore for the consumers.
• Currently, 57 anti-cancer drugs are under price control as scheduled formulations.
• Now 42 non-scheduled anti-cancer medicines have been selected for price regulation by restricting trade margin on the selling price up to 30 per cent.
• The medicines would cover 72 formulations and 355 brands, as per the data available with NPPA.
• More data is being collected from hospitals and manufacturers to finalise the list.
• The drug manufacturers have been given seven days to recalculate the prices and inform the NPPA, state drug controllers, stockists and retailers.
• The revised prices shall come into effect from March 8, 2019.

Background

• The National Pharmaceutical Pricing Authority currently fixes prices of drugs placed in the National List of Essential Medicines under Schedule-I of the DPCO.
• So far, around 1000 drugs have been brought under price control under the initiative.
• Non-scheduled drugs are allowed an increase of up to 10 per cent in prices every year, which is monitored by the NPPA

Pic courtesy:Jagran Josh