Message from Chairman

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 Message from Chairman

 The National Pharmaceutical Pricing Authority (NPPA) was established through a Government of India Resolution on August 29, 1997. NPPA is responsible for the implementation of the National Pharmaceutical Pricing Policy, 2012 and the Drugs (Prices Control) Order (DPCO), 2013. Drug price control, which is prevalent in one form or the other throughout the world, assumes special importance, as it directly impacts the quality of public health. The primary aim of the NPPA is to ensure adequate availability of essential and lifesaving drugs at affordable prices and in doing so, it carefully balances the interests of both the producers and the consumers.

2.         The DPCO 2013, provides for a market based pricing mechanism as opposed to cost based pricing mechanism that was prevalent under DPCO 1995. Department of Pharmaceuticals notified the New First Schedule of DPCO, 2013 based on National list of Essential Medicines (2015) on March 10, 2016. NPPA has started the exercise of fixing the ceiling prices of the medicines in the NLEM-2015 and in a short span fixed and notified the ceiling price of 330 formulations as on June 10, 2016. The NLEM 2015 contains a total of 799 formulations under 30 therapeutic groups. NPPA is working to fix the price of these drugs as soon as possible. As on date, 969 scheduled formulations are under direct price control.

        The online platform Integrated Pharmaceutical Database Management System (IPDMS) enables online submission of mandatory forms prescribed. IPDMS when fully operational will bring in better transparency and facilitate monitoring and enforcement. In spite of several earnest appeals to all the drug manufacturers to submit the required information within the stipulated period of time and several extensions of the deadline, the response from the industry so far has been unsatisfactory. NPPA has now been constrained to issue show cause notices to individual manufacturers for non-compliance.  

        The Pharma Jan Samadhan (PJS), a public grievance portal was launched last year, to facilitate the submission of grievances by the public. PJS has a web-enabled system as well as telephonic helpline. NPPA is committed to redress all the public grievances coming to its notice on priority. An internal guideline in order to streamline the process of recovery from the companies indulging overpricing the medicines and violating various provisions of DPCO, 2013 has been uploaded on our website to ensure transparency and uniformity in dealing with such cases. NPPA has further strengthened its monitoring system for ensuring price compliance and there are about 2700 cases of price violation under examination.

4.         With a view to carrying out its functions in a holistic manner, the NPPA maintains close coordination with the concerned Ministries of the Central Government, State Governments, industry associations, consumers and other stakeholder organisations. The price fixation notifications are uploaded on our website along with the calculation sheets which has ensured absolute transparency in the process. NPPA also entertains representation from industry and open to any correction if needed.

5.         The Indian drug industry has registered spectacular growth over the last two decades. The annual turnover of domestic pharmaceutical sector stood at Rs. 128,044.29 crores in the year 2013-14 as reported in the Annual Report 2014-15 of the Department of Pharmaceuticals. Export of medicines and Pharmaceutical products touched Rs. 69,023 crores in 2013-14. The Indian Pharmaceutical industry has been a dominant player in manufacturing generic drugs, but of late it has also made significant headway in research and development for developing new and innovative drugs.

Given the inherent advantage of a large and vibrant drug industry in the country and increasing priority attached to public health care by both the Central and State Governments, the NPPA is confident of making its contribution in ensuring sufficient availability of essential and life saving medicines at affordable prices with the cooperation of all concerned, particularly the pharmaceutical industry. NPPA looks forward the cooperation of informed citizens to help us in this mission.

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