National Pharmaceutical Pricing Authority

Why in news?

• NPPA increased the prices of as many as 800 essential medicines by 10.7 per cent, effective from April 1,2022

About National Pharmaceutical Pricing Authority:

• NPPA was set-up as an independent Regulator on 29th August, 1997 for pricing of drugs and to ensure availability and accessibility of medicines at affordable prices.
• NPPA is neither a Statutory nor a Constitutional Body.
• It is an attached office of the Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers was created by a government resolution
• NPPA is responsible for implementing and enforcing the provisions of the Drugs Price Control Order (DPCO).

Functions of NPPA:

• Fixation and revision of prices of ‘Scheduled’ drugs under Drug (Price Control) Orders issued from time to time.
  • As per the Drugs (Prices) Control Order 2013, scheduled drugs, about 15% of the pharma market, are allowed an increase by the government as per the WPI (Wholesale Price Index) while the rest 85% are allowed an automatic increase of 10% every year.
• Monitoring and enforcement of prices.
• Ensuring availability and accessibility of all medicines and medical devices, including nonscheduled drugs.
• To undertake and/or sponsor relevant studies in respect of pricing of drugs/formulations.
• To collect/maintain data on production, exports and imports, market share of individual companies, profitability of companies etc. for bulk drugs and formulations.
• To render advice to the Central Government on changes/revisions in the drug policy.

PRACTICE QUESTION:

Consider the following statements regarding ‘National Pharmaceutical Pricing Authority’:

1. It is a statutory body constituted under Ministry of Health and Family Welfare

2. It is responsible for implementing and enforcing the provisions of the Drugs Price Control Order (DPCO).

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