The National Pharmaceutical Pricing Authority (NPPA) has reduced the price of six formulation packs of benzathine penicillin G injection dosage forms from around 10 to 20 per cent with effect from June 11, 2007. All the formulations subjected to revision fall under the product portfolio of Hindustan Antibiotics Ltd (HAL).
According to the notification, the price of benzathine penicillin G injection 6 lac IU or vial has reduced from Rs 8.54 to Rs 7.64 per vial, resulting a decrease of 10.54 per cent in the non ceiling price (NCP). Cost of the product in 5 vial has reduced from Rs 42.68 to Rs 38.16 with a reduction of 10.59 per cent. The price reduction reached more than 20 per cent for benzathine benzyl penicillin injection 48 lac unit or vial (Vet) with a decrease from Rs 34.80 to Rs 27.54 making 20.86 per cent cut in the NCP.
The price revision of the retail price of various packs of the product is effective, exclusive of excise duty, sales tax or Value Added Tax and local taxes, if any. The new order is applicable for manufacturers of the specified formulations if it has complied with the requirements of the Drugs and Cosmetics Act, 1940 (23 of 1940) and the Industries (Development and Regulation) Act, 1951 (65 of 1951) as amended from time to time.
The NPPA notification adds that the prices fixed or revised is the maximum retail prices (excluding of excise duty, sales taxes or VAT and of local taxes, if any) for the specified pack and packs of similar strength. Companies cannot claim exemption on any ground there from, unless specifically permitted by the Government or NPPA through an order.
However, the companies can approach NPPA for approval or fixation of specific prices for different packing material used or any special feature claimed. The company is required to submit quarterly report on production, captive consumption of bulk drug for the production of formulation as per proforma by 10th January, April, July and October of its preceding quarter to the government/NPPA in respect of benzathine pencillin G.
The manufacturers using the bulk drug benzathine pencillin G produced by HAL in their derivative formulations would also be allowed the price mentioned in the latest notification, subject to condition that the respective formulators submit the documentary evidence regarding its procurements of the said bulk drug from HAL to the government/NPPA.
The notification also clarifies that the latest order is issued superceding the order of NPPA on 5th February 2007 and the ceiling prices fixed under para 9 of Drugs (Prices Control) Order, 1995 for benzathine pencillin G based formulation will not be applicable in the case until the latest order is revised or rescinded.