Drug price cut yielded Rs 2,772 crore benefit to public: Government

New Delhi: The government's decision to reduce prices of drugs, including those of cancer, cardiovascular diseases, AIDs/HIV and diabetes, has benefited the public to the tune of some Rs 2,772 crore, the Lok Sabha was told today.

Out of a total of 680 under the National List of Essential Medicines (NLEM) under the scheduled category of DPCO, 2013, the National Pharmaceutical pricing Authority (NPPA) has already fixed the ceiling prices in respect of 530 medicines, Minister of State of Chemicals and Fertilizers Hansraj Gangaram Ahir said in a reply to a question in the Lok Sabha.

"As a result of reduction in the prices of scheduled medicines under price control, the price benefit that accrued to the common man is estimated to the extent of Rs 2,422 crore," he added.

This includes 47 formulations for cancer, 53 for cardiovascular diseases, 20 for AIDS/HIV and 6 for diabetes, Ahir said.

In addition, maximum retail has been capped in respect of 106, non-scheduled medicines, under para 19, of the Drug Price Control Order (DPCO) 2013, the minister added.

"The price benefit accrued to the common man on account of price fixation of these 106 formulations related to anti-diabetic and cardiovascular therapies is to the tune of around Rs 350 crore," Ahir said.

NPPA has also fixed the retail price of 247 new drugs under para 5 of DPCO, 2013, he added.

All the NLEM 2011 medicines have been included in the first schedule of DPCO, 2013, and brought under price control.

Of the 530 scheduled formulations, the price reduction was above 40 per cent in the cases of 126 drugs compared with the highest prevailing price prior to announcement of DPCO, 2013, Ahir said.

Above 40 per cent reduction in prices of non-scheduled medicines was also effected for 19 formulations with respect to highest prevailing MRP prior to price capping, he added.