National List of Essential Medicines

Why in news?

• The National Pharmaceutical Pricing Authority (NPPA) has announced an annual change of 10.76% in the Wholesale Price Index (WPI), which could translate into the steepest price increases in years for over 800 scheduled drugs and medical devices in the National List of Essential Medicines (NLEM).

What is an Essential Medicines List?

• As per the World Health Organisation (WHO), Essential Medicines are those that satisfy the priority health care needs of the population.
• The list is made with consideration to disease prevalence, efficacy, safety and comparative cost-effectiveness of the medicines.
• Such medicines are intended to be available in adequate amounts, in appropriate dosage forms and strengths with assured quality. They should be available in such a way that an individual or community can afford.
• Drawing an essential medicines list (EML) is expected to result in better quality of medical care, better management of medicines and cost-effective use of health care resources. This is especially important for a resource limited country like India.
• The list of essential medicines is intended to have a positive impact on the availability and rational use of medicines

About National List of Essential Medicines:

• The WHO EML is a model list. The decision about which medicines are essential remains a national responsibility based on the country’s disease burden, priority health concerns, affordability concerns etc.
• Ministry of Health and Family Welfare hence prepared and released the first National List of Essential Medicines of India in 1996 consisting of 279 medicines.
• This list was subsequently revised several times
• As of 2021, 886  medicines are regulated under Schedule – I of  DPCO based on National List of Essential Medicines, 2015.

About Drugs (Price Control) Order, 2013:

• As per the price control order, the NPPA is empowered to fix the ceiling price of essential medicines and medical devices — 886 in number currently.
• The order also provides for a WPI-based price change every year that pharmaceutical companies are allowed to implement.
• As per this provision, the NPPA declares the WPI change every year.
• DPCO are issued under Section 3 of Essential Commodities Act, 1955.
• National List of Essential Medicines (NLEM) issued by MoHFW forms the basis Schedule I of DPCO.

Which medicines and devices are included in the NLEM?

• Some of the most common drugs and medical devices, including paracetamol tablets, azithromycin tablets, oral rehydration salts, glucose injections, contraceptives like copper IUDs, condoms, insulin injections, Vitamin C tablets, and multivitamin tablets, are in the NLEM.
• These drugs constitute around 18% of India’s aggregate domestic pharmaceutical retail market of approximately Rs 1.5 lakh crore.

PRACTICE QUESTION:

Consider the following statements:

1. Drugs (Price Control) Order, 2013 provides for a WPI-based price change every year that pharmaceutical companies are allowed to implement.

2. National List of Essential Medicines includes medical devises also

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer