More than 600 cases of drug overcharging, reports NPPA

National drug pricing regulator NPPA has identified 634 cases where noncompliance of notified ceiling prices is suspected, Parliament was informed today.

National Pharmaceutical Pricing Authority (NPPA), after analysis of market data and associated reports of December 2016 submitted by AIOCDAWACS, has identified 634 cases where non-compliance of notified ceiling price is suspected, Minister of State for Chemicals and Fertilisers, Mansukh L Mandaviya, said in a written reply to the Lok Sabha, reports PTI.

As stipulated under the Drugs (Prices Control) Order (DPCO) 2013, NPPA fixes ceiling price of essential medicines of Schedule I. In respect of medicines not under price control, manufacturers are allowed to increase the maximum retail price by 10 per cent annually. The calculation for essential drugs is based on the simple average of all medicines in a particular therapeutic segment with sales of more than 1 per cent.

The government had notified the DPCO 2013, which covers 680 formulations, with effect from May 15, 2014, replacing the 1995 order that regulated prices of only 74 bulk drugs.