NPPA Warns Drugmakers Against Arbitrary Pricing, Calls for MRP Uniformity
New Delhi: In a move to ensure uniform pricing and check arbitrary price differences across pharmaceutical brands, the National Pharmaceutical Pricing Authority (NPPA) has directed all drug manufacturers to align the Maximum Retail Prices of non-scheduled formulations launched under different brand names.
This directive is based on Paragraph 20 of the Drugs (Prices Control) Order, 2013 (DPCO, 2013). Paragraph 20 of the Drugs (Prices Control) Order (DPCO), 2013 governs the monitoring of Maximum Retail Prices (MRP) of non-scheduled formulations, including new drugs and medical devices that are not included in Schedule-I of the DPCO.
The NPPA has observed that certain manufacturers are marketing the same formulation under multiple brands with unjustifiable MRP differences. To address this, the authority has mandated that such variations must not exceed 10 percent.
The official directive stated: “All manufacturers are hereby directed to align the prices of non-scheduled formulation launched under different brands, as per the provisions of para 20 of the DPCO, 2013, so that the difference in MRP is not more than ten percent.”
This directive holds critical importance for maintaining pricing consistency in the pharmaceutical market and promoting affordability for patients who often encounter significant cost discrepancies for the same drug sold under different brand names.
Further, the NPPA has cautioned manufacturers against any violations of the order. Non-compliance will invite penal action under both the DPCO, 2013 and the Essential Commodities Act, 1955. The directive specifically noted: “Any violation of the provision specified in para 4 above shall attract penal action under the provisions of the DPCO, 2013 and Section 7 of the Essential Commodities Act, 1955.”
All stakeholders have been asked to ensure strict compliance with the pricing norms laid out under DPCO, 2013 to avoid regulatory action and support patient welfare.
