The National Pharmaceutical Pricing Authority (NPPA), which tried to enforce pro-rata pricing of brands for strips in 1998, is working out a formula to extend it to other segments like liquids, injectibles and tubes on a gradual basis to cover the entire scheduled drugs category.
Having come across large number of irrational package sizes being introduced by the companies to wriggle out of the price control, but in violation of the Para 8(6) of the DPCO, the regulator will now impose the pro-rata pricing on the liquid segments, besides enforcing the norms strictly on the strips and blisters, it is learnt.
With glass bottles also being brought under pro-rata pricing, about 77 per cent of the scheduled drugs category will be covered. However, the 12,000-odd formulation packs (74 essential drugs) under the controlled category constitute only 20 per cent of the pharma market.
As soon as the formula is worked out, the NPPA would be introducing it. It is expected to help the consumers who are now forced to buy larger pack sizes after the companies change the size of packs to circumvent the control on prices of a particular pack of a brand. On the positive side, the manufacturers will also be benefited by saving time and energy spent on applying for approval to the package size every time they change. Because, once the price is fixed for a formulation of a standard pack size, the corresponding rate would be applied to all other strengths.
An ORG survey has stumbled upon many non-stanadard package sizes especially in syrup, liquid and cream segments. If a betametasone drug (Diprovate lotion) was found in a pack of 16 g, some other brands were packed in larger quantities. Ensamycin cream (7.5g), Moisturex cream (75g), Ccop-G cream (11g), Atro eye ointment (3.5g), Candid-V gel (1.13g), and Sistern gel (1.55g) were among those hundreds of very odd package sizes, as per the survey.
According to a notification by the NPPA on January 27, 1998, prices for strips had been fixed on pro-rata basis, but many companies dodged the price control by changing the package sizes and reaped high profits. The NPPA could finally track it down somewhere in the country.
``The manufacturers of all the Scheduled formulation pack sizes different from the notified pack size under sub-paragraphs (1) and (2) of the paragraph 9 of the said Order, shall work out the price for such pack sizes, in respect of tablets and capsules of the same strength or composition packed in different strips or blisters, on prorata basis of the latest ceiling price fixed for such formulations under sub-paragraphs (1) and (2) of paragraph 9 of the said order,'' the notification said.