No bar on taking corrective measures if error occurs in fixing retail price of drugs: NPPA

This came after the Authority identified an error in the database based on which the price was fixed, and was taking a corrective measure related to the retail price notified for a vitamin product manufactured by Ravenbhel Healthcare and marketed by Mankind Prime Labs.

The Authority noted that the price of the said product, manufactured by Ravenbhel and marketed by Mankind Prime, was fixed at Rs 13.94 per ml in the 97th Authority meeting held on May 6, 2022 and notified on May 9.

However, an error was observed in the Pharmatrac database - from the market research firm Pharmatrac whose database is used by the NPPA to fix drug prices - while fixing the price of same formulation for Micro Labs Ltd (marketing) and Ravenbhel healthcare for an application it received in June, 2022. It has been identified that with respect to one of the line items Kidrich D3 60,000 IU drops 5 ml of Dr Reddy Laboratories, it was appearing in Pharmatrac database at Rs 198 per 5 ml pack against Rs 49.50 per 5 ml as per web sources.

The Authority then sought clarification from Pharmatrac and from Dr Reddy's Laboratories. Pharmatrac in its response in September confirmed that the correct price of the said stock keeping unit is Rs 49.50 per ml, while Dr Reddy's confirmed that the price of Rs 198 is for the pack size of 4x5 ml of Kidrich D3 60,000 drops 5 ml.

The Authority observed that if the data for the said line item is rectified, the corrected price for Mankind Pharma's product would be Rs 11.70 per ml, as against Rs 13.94 per ml notified earlier.

NPPA deliberated upon the matter and observed that it is mandated to fix the retail price of drugs and in execution of this function, the analysis of data is carried out and prices are fixed as per the methodology provided in the DPCO, 2013.

It added;

"While doing the analysis of the data, NPPA may come across data inconsistency/miscalculations/errors that might have occurred. If any such issues are discovered, the same may be corrected by the NPPA. There can be no bar on NPPA to take corrective measures and the DPCO also does not bare the same."

In view of the observation, the Authority approved the revised price for the product at Rs 11.70 per ml, and also noted that the same shall be informed to the Department of Pharmaceuticals (DoP).

It noted;

"The Authority approved the revised prices for M/s Mankind Pharma Limited M/s Ravenbhel Healthcare Private Limited (Marketer/Manufacturer) and M/s Mankind Prime Labs Private Limited/M/s Ravenbhel Healthcare Private Limited (Marketer/Manufacturer) at Rs 11.70 per ml (as against Rs 13.94 - per ml notified vide SO 2164 (E) dated 09.05.2022) and also noted that the same shall be informed to DoP."