NPPA Hikes Price of Cholesterol-Lowering Drug Atorvastatin

The DoP’s intervention was prompted by a review application filed by Abbott Healthcare challenging the methodology used in determining the price. The drugmaker contested that the NPPA had not accounted for updated Price to Retailer (PTR) data during its earlier price calculations. The review authority instructed the NPPA to revisit the ceiling price calculations for three drug formulations, including Atorvastatin 10 mg, in adherence to the Drug Price Control Order (DPCO), 2013.

Abbott Healthcare argued that the NPPA did not consider the updated Price to Retailer (PTR) for certain brands while finalizing the ceiling price under the National List of Essential Medicines (NLEM) in 2022. Brands such as Atchol from Aristo Pharma, Avas from Micro Labs, and Lipikind from Mankind Pharma were cited as examples of omitted data. Additionally, Abbott pointed out procedural differences, such as the absence of a corrected worksheet being made available for stakeholder review, as outlined in the NPPA’s December 2022 meeting.

In response, the NPPA stated that manufacturers must submit price revisions based on the Wholesale Price Index (WPI) within 15 days of implementing changes. While some companies like Aristo Pharma complied, others, including Micro Labs and Mankind Pharma, delayed submissions. Consequently, the NPPA argued that it adhered to available data for price calculations. Despite this, the review authority noted that procedural gaps, such as the failure to consider legitimate updates, warranted the recalculation of the ceiling price.