Message from Chairman


Chairman

CHAIRMAN
NATIONAL PHARMACEUTICAL PRICING AUTHORITY
DEPARTMENT OF PHARMACEUTICALS
MINISTRY OF CHEMICALS & FERTILIZERS
GOVT. OF INDIA
3RD FLOOR, YMCA CULTURE CENTRE BUILDING ,
1, JAI SINGH ROAD , NEW DELHI -110001
TEL. : 011-23746639, FAX : 23746652

Injeti Srinivas, IAS

 Message from Chairman

The National Pharmaceutical Pricing Authority (NPPA), has been established through a Government of India Resolution on August 29, 1997, and is responsible for the implementation of the National Pharmaceutical Pricing Policy, 2012 and the New Drugs (Prices) Control Order (DPCO), 2013.

2.         As an independent regulator of drug price in the country, the NPPA is currently guided by the DPCO 2013, which provides for a market based pricing mechanism as opposed a cost based pricing mechanism that was prevalent under DPCO 1995.  Apart from price fixation of scheduled drugs, which consists of 348 medicines falling under 27 therapeutic groups included in the National List of Essential of Medicines (NLEM) 2011, the NPPA also monitors the price of non-scheduled drug formulations.  In total, 628 scheduled formulations are under direct price control, which covers around 16% of the domestic market (moving annual turnover between June 2013-May, 2014), which is estimated at around Rs.82,000   crore as per IMS health database.

3.
       With a view to carrying out its functions in a holistic manner, the NPPA maintains close coordination with the Ministries concerned of the Central Government, State Governments, industry associations, consumers and other related organisations.  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 life saving drugs at affordable prices and in doing so it carefully balances the interests of both the producers and the consumers. 

4.         The Indian drug industry has registered  spectacular growth over the last two decades and currently occupies the 3rd position in the world in terms of volume and 10th in value. So much so that India is often referred to as the ‘Pharmacy of the Developing World’.  The pharmaceutical exports are valued at over US $ 14 billion.   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 Centre 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.

  

                                                                                                                           
New Delhi, the 02nd July, 2014                                                                                         (INJETI SRINIVAS)


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