NPPA Regulated Prices of 2,295 Essential Drugs Over Five Years, Says Govt

In her response, the minister confirmed that an effective ceiling price control mechanism is in place through the NPPA to regulate medicines listed under the National List of Essential Medicines (NLEM). She stated:

"The National List of Essential Medicines (NLEM), notified by Ministry of Health and Family Welfare from time to time, is incorporated as Schedule-I to the Drugs (Prices Control) Order, 2013 (DPCO, 2013). The National Pharmaceutical Pricing Authority (NPPA) under the Department of Pharmaceuticals fixes the ceiling prices of these scheduled medicines in accordance with the provisions of DPCO, 2013. All manufacturers of scheduled medicines are required to sell their products within the ceiling price (plus applicable local taxes) fixed by the NPPA."

When asked about the government's efforts to make medicines more affordable over recent years, Patel said:

"NPPA has fixed and notified under DPCO, 2013 retail prices of 2295 new drugs during the period from 01.01.2020 to 17.07.2025."

The minister further explained that NPPA fixes the retail price of “new drugs”, a category defined under paragraph 2(u) of the DPCO, 2013. This includes:

"...a formulation launched by an existing manufacturer of a drug of specified dosages and strengths as listed in the NLEM by combining the drug with another drug either listed or not listed in NLEM or a formulation launched by changing the strength or dosages or both of the same drug of specified dosages and strengths as listed in NLEM."

The prices fixed under this framework are binding upon the applicant manufacturer or marketing company, which is required to sell the formulation within the limits notified by the NPPA.