Key anti-infectives among 43 new drugs under price control

The National Pharmaceutical Pricing Authority (NPPA) has announced a new list of molecules – mainly anti-infectives followed by vaccines and gastro category-- that have been brought under price control.

NPPA on its website said it has fixed/revised the prices in respect of 43 formulation packs both ceiling and retail price packs under DPCO, 2013. The formulations whose price has been fixed are aluminum hydroxide with magnesium hydroxide, IUD containing copper, Cefotaxime, Chlorpromazine Hcl, Ciprofloxacin Hcl, Cloxacillin, Rifampicin, aluminum hydroxide with magnesium hydroxide, BCG vaccine, Enalpril Maleate, Dextromethorphan, Cefpodoxime Proxetil with Azithromycin (Azibact – CF), Acetaminophen with Tramadol HCl (PT-325), Metformin SR (SCODIA SR 1000 & 750), Tramadol Hcl with Dicyclomine Hcl with Acetaminophen (Parvon-Spas Plus), Glimepiride with Metformin (Zoryl M 0.5) and Famotidine tablet 20 mg.

According to market research entity AIOCD AWACS, the ceiling prices being announced for DPCO 2013 products already have had an impact for several companies and overall pharma market over the past year.

"For certain companies the impact of DPCO has been significantly higher – both due to percentage coverage of products under DPCO where ceiling price has been announced and due to their products/brands being above the ceiling price," it said.

NPPA has also revised 20 notified ceiling prices based on scheduled formulations listed in National List of Essential Medicines (NLEM), 2011 and included in the DPCO, 2013 as well as DPCO, 1995.

The recent list of molecules under price control as announced by NPPA will mostly cover anti-infectives followed by gastro and vaccines.

"With this list the scope increases predominantly in the anti-infective space. The major impact has come in the form of Ciprofloxacin 500 & 250 mg, which is 65% of the market of the released ceiling price," AIOCD AWACS said.

According to the research firm, the moving annual total (MAT) value of the drugs which brought under price control is estimated Rs 450 crore. This is excluding the 20 notified drugs whose prices were revised. The research entity has estimated the value loss at the MRP level due to the price cut would be around Rs 179 crore, and at the company level the value of loss will get reduced by 20%.

In another development, the Delhi High Court on Thursday asked drug companies, including Novartis India and Cipla, to hold a meeting with the union government and try to resolve the issue of implementing the revised drug pricing. NPPA has recently announced price control on 108 formulation covering cardiac and anti-diabetic drugs. Pharma companies had moved the court against NPPA's decision on ground that move was made without any discussion with the companies.

A bench of Justice B D Ahmed and Justice Vibhu Bakhru said representatives of the pharma companies hold a meeting with the NPPA director and ministry of chemicals and fertilisers, to settle the matter "once and for ever".

The matter would be heard on October 30.