Medicines worth Rs 6,975 crore in MRP terms sold through JAKs in last 10 years

Currently, the prices of drugs in the country are regulated as per the principles laid down in the National Pharmaceutical Pricing Policy, 2012 (NPPP, 2012) which is operationalised through the Drug (Prices Control) Order, 2013 (DPCO, 2013). The National Pharmaceutical Pricing Authority (NPPA) fixes the ceiling prices of scheduled medicines notified as Schedule-I of the DPCO, 2013 by the Department of Pharmaceuticals.

The National List of Essential Medicines (NLEM) published by the Ministry of Health and Family Welfare is incorporated as the Schedule-I of the DPCO. Presently, NLEM, 2022 is notified as Schedule-I of DPCO, 2013 vide notification dated 11.11.2022.

NPPA fixes the ceiling prices of scheduled medicines, that is, the medicines specified in the said Schedule. The prices fixed by NPPA are applicable to all manufacturers/marketers selling the specified formulations, whether generic or branded. Manufacturers/marketers of scheduled medicines (branded or generic) are required to sell the same within the ceiling price fixed by the NPPA and applicable GST and annual revision on the basis of WPI.

The average price reduction due to refixation of prices under NLEM, 2022 is about 17%, leading to annual savings of approximately ₹3,788 crore to patients.

NPPA also fixes the retail prices of new drugs as defined in DPCO, 2013 for existing manufacturers of scheduled formulations. Retail price of over 3,100 new drugs under DPCO, 2013 till 13.2.2025 have been fixed.

For non-scheduled formulations (branded or generic), the manufacturers may not increase the maximum retail price of such formulations by more than 10% per annum. In addition, NPPA has fixed the prices of number of drugs, in public interest, as follows:

1. In 2014, NPPA capped the MRP of 106 non-scheduled anti-diabetic and cardiovascular treatment drugs, resulting in estimated annual savings of about ₹350 crore to patients.

2. Trade margin of non-scheduled formulations of 42 select anti-cancer medicines were capped under a trade margin rationalisation approach, wherein price of about 500 brands of medicines were reduced by an average of about 50%, resulting into estimated annual saving of about ₹ 984 crore to patients.

3. In February 2017, ceiling prices of coronary stents were fixed, resulting in estimated annual savings of about ₹11,600 crore to patients.

4. In August 2017, ceiling prices of orthopaedic knee implants were fixed, resulting in estimated annual savings of about ₹1,500 crore to patients.

5. In June/July 2021, trade margin of oxygen concentrators, pulse oximeter, blood pressure monitoring machine, nebuliser, digital thermometer and glucometer were also capped, resulting in estimated annual savings of about ₹1,000 crore to consumers.

To spread awareness about the Pradhan Mantri Bhartiya Janaushadhi Pariyojana scheme, the Pharmaceuticals and Medical Devices Bureau of India, the scheme implementing agency of Pradhan Mantri Bhartiya Janaushadhi Pariyojana, regularly undertakes several activities.

The activities include the issuance of advertisements in various modes, such as the print media, radio, TV, mobile application, cinema, hoardings, branding of bus queue shelters and buses, auto wrapping and TV screens at Common Service Centres; outreach through social media platforms, such as Facebook, X, Instagram and YouTube; and celebration of Jan Aushadhi Diwas on the 7th of March every year.