The National Pharmaceutical Pricing Authority (NPPA) has revised the guidelines for monitoring of prices of non-scheduled formulations on the basis of regular data from ORG IMS in a bid to check prices of decontrolled drugs if they exceed 10 per cent in a year.
Companies will be short listed where there is an increase in price of a non-scheduled formulation by more than 10 per cent during a period of 12 months and the annual turnover of the formulation pack exceeds Rs 1 crore. Further, the share of the formulator in that segment of the formulation is required to be at least 20 per cent of the market or the medicine is one of the first 3 top medicines of that group.
This was done in pursuance of Resolution No. 33/7/97-PI.I. dated 29.08.1997 issued as per the provisions of the Drugs (Prices Control) Order, 1995 read with Essential Commodities Act 1955, the Rajya Sabha was informed.
``The manufacturer will be asked to furnish reasons for such price increases or to bring down the prices voluntarily and to thereafter maintain the price levels,'' the guidelines said.
NPPA will initiate action against those who do not comply with the internal guidelines or directions of NPPA for monitoring of prices of non-scheduled formulations and will be liable for action under para 10(b) of DPCO, 1995, it was informed.