Apex drug price regulator increases the ceiling price of key drugs used to manage asthma, TB, mental health disorders

New Delhi: The National Drug Price Regulator (NPPA) has increased the ceiling prices of eight drugs by 50%. 

These drugs are used for the treatment of a range of conditions such as asthma, glaucoma, thalassemia, tuberculosis and mental health disorders. 

The decision was taken during a meeting held on 8 October, which approved hiking the ceiling prices of eleven formulations of eight drugs by 50%, the government said in a statement on Monday

It said most of these drugs are low-cost and generally used as first-line treatment crucial to the public health programmes of the country.

Ceiling revised 

The formulations for which ceiling prices have been revised include Benzyl Penicillin IU injection and Atropine injection 06.mg/ml; Streptomycin powder for injection 750 mg and 1000 mg; Salbutamol tablet 2 mg and 4 mg and respirator solution 5 mg/ml; Pilocarpine 2% drops; Cefadroxil tablet 500 mg, Desferrioxamine 500 mg for injection; and Lithium tablets 300 mg.

“The NPPA has been receiving applications from manufacturers requesting an upward revision of prices, citing various reasons such as increased costs of active pharmaceutical ingredients, higher production costs, and changes in exchange rates. These factors have led to concerns about the sustainability of drug production and marketing. Also, companies have sought to discontinue some formulations due to their unavailability,” it said.

Similarly, the regulator allowed a 50% increase in the prices of 21 formulations 2019 and nine in 2021.

“The ceiling prices of these medicines were so low that companies engaged in manufacturing and marketing these drugs were making loss. Consequently some companies had stopped marketing them and some had requested NPPA to stop marketing them. Though these are basic drugs, these medicines remained in short supply creating hassles for patients and prescribers. Upward revision of ceiling prices of these drugs will help availability and accessibility of these and it is a welcome move in the interest of patients,” said Dr Viranchi Shah, National President, Indian Drugs Manufacturers Association (IDMA)

In India, the government controls the prices of drugs through the Drugs Prices Control Order (DPCO), 2013. Essential medicines or scheduled formulations have a maximum price limit called the Ceiling Price, which can be increased each year based on the WPI rate set by the government.