The National Pharmaceutical Pricing Authority (NPPA) has revised the guidelines for monitoring of prices of non-scheduled formulations, making the 10 percent ceiling in prices effective only from April 1, 2007, instead of January 2007

The guidelines have been revised in pursuance of Resolution No. 33/7/97- PI.I, dated 29.08.1997 issued as per the provisions of the Drugs (Prices Control) Order, 1995 read with Essential Commodities Act, 1955, said an official release (as below.)

It may be noted that the NPPA had sent notices to companies who increased prices of non-scheduled formulations beyond 10 percent with effect from January, thus drawing flaks from the industry. The new guidelines were made reportedly under instruction from the Chemicals Ministry. Now the cases booked under the period January-March will be reviewed, and the annual price increase of up to 20 percent will be allowed.

Revised Guidelines for monitoring of prices of Non Scheduled formulations.
National Pharmaceutical Pricing Authority/ Guideline No. 1/2008

In pursuance of Resolution No. 33/7/97-PI.I, dated 29.08.1997 issued as per the provisions of the Drugs (Prices Control) Order, 1995 read with Essential Commodities Act, 1955, the National Pharmaceutical Pricing Authority (NPPA) has decided to revise the guidelines for monitoring of prices of non-scheduled formulations as follows:-

  1. The monitoring of prices of non-scheduled formulations will continue to be on the bases of regular data from ORG IMS.
  2. Companies will be short listed on the basis of the ORG data, where there is an increase in prices of a non-scheduled formulation by more than 10% during a period of 12 months and the annual turnover of the formulation pack exceeds Rs. 1 crore. Further, the share of the formulator in that segment of the formulation is required to be at least 20% of the market or the medicine is one of the first 3 top medicines of that group.
  3. The concerned manufacturer will be asked to furnish reasons for such price increases or to bring down the prices voluntarily and to thereafter maintain the price level.
  4. NPPA will initiate action against those who do not comply with the internal guidelines or directions of NPPA for monitoring of prices of non-scheduled formations and will be liable for action in “public interest” under para 10(b) of DPCO,
  5. The aforesaid dispensation in respect of the above has been adopted w.e.f. 1st April 2007.

(M.P. Singh)
Director (Legal)
F.NO. 20(175)2007/Div.IV/NPPA
Date. 18.01.2008