The National Pharmaceutical Pricing Authority has extended the validity of its norms for conversion cost, packaging charges and process loss for the forth time since 1999. The extension of the validity is in compliance with the paragraph 7 of the Drugs (Prices Control) Order, 1995, which stipulates an annual fixation of CC/PC norms. The latest announcement has come on July 11, 2003.
The absence of revision of CC/PC norms which plays a major role in calculating the Maximum Allowable Post Manufacturing Expenses (MAPE) has been a bone of contention for the industry for long time now. Though NPPA, in association with the National Institute for Pharmaceutical Education & Research (NIPER) had undertaken an elaborate study to assess the cost factor, it had to be abandoned due to the resistance from the industry.
Recently, the NPPA assigned the cost accounts branch of the Finance Ministry to take up the job of revising the norms.
According to Pradeep Mehra, member secretary, NPPA, the finance ministry is in the process of fixing the norms and it may take some more time before the works can be completed. He said that the agency is co-operating with the ministry in all aspects but would not like to interfere in their job.
NPPA is also known to have identified 20 representative pharma companies who have been asked to give their suggestions in the process of revising the CC/ PC norms.
After having first notified in 1999, NPPA has been extending the validity of the same norms every year since then.