Making a pro-active path instead of mere submissions from the industry, the National Pharmaceutical Pricing Authority (NPPA) has initiated the annual process of revising norms of conversion cost (CC), Packing Charges (PC), Process Loss (PL) and Packing Material (PM) by involving the stakeholders to address their concerns.
Apart from the usual manner of taking inputs through submissions, the price regulator held a meeting with the industry for the first time in this connection and sought to take into consideration their grievances and concerns.
As decided in the meeting held in May, the agency has sent out detailed questionnaires to the concerned industry bodies and companies to submit the details by July 31 so that it can fix the norms as per the provisions of the DPCO, 1995.
The agency is likely to revise the norms with an upward push, after the going through the submissions by the industry which demanded higher charges considering the rise in the material costs and other input costs.
The industry associations like the Organisation of Pharmaceuticals Producers of India (OPPI), Indian Drug Manufacturers Association (IDMA), Confederation of Indian Pharmaceutical Industry (SSI), Indian Pharmaceutical Alliance (IPA), Bulk Drug Manufacturers Association (BDMA) and Pharmaceutical & Allied Manufacturers & Distributors Association Limited (PAMDAL) were consulted at the meeting by the NPPA.
Norms for CC, PC, PL & PM are to be based on the actual cost data and information received from various manufacturers and formulators, according to a note sent by the NPPA to the industry bodies, along with the detailed questionnaire.
“Information sought in the questionnaire may be furnished based on the Audited Annual Accounts. Copies of Audited Annual Accounts & Annual Reports of the Company for the years 2010-2011 and 2011-2012 and relevant extract of the Cost Audit Report in support of production and cost details furnished in the questionnaire should be furnished. The questionnaire, duly filled, may also be submitted in a CD, in MS-Excel, along with the hard copy for speedy processing of the data,” the notice by the NPPA said.
According to the existing norms, the conversion cost for tablets (plain) per 100 tablets upto 100 mg will be Rs. 9.22 while that for medium tablets (101-350 mg) will be Rs. 12.78. Large tablets (351-600 mg) will be Rs. 22.45 and extra large (601- 900 mg) will be Rs. 26.49. The conversion cost for tablets ranging between 901 and 1200 mg will be Rs. 31.52 while above 1200 mg will be Rs. 31.52 along with Rs. 0.76 for each 100 mg.
In the case of coated tablets (per 1000), the conversion rate will be Rs. 13.81 for small tablets. The conversion rate for coated tablets of medium quantity (101-350 mg) will be Rs. 19.45 and those of large type ( 351-600 mg) will be Rs. 28.72.
“Additional 10% of packing charges shall be applicable for canulae/applicator and droppers, wherever provided and for Inhaler using capsules, norms for capsules shall apply and where applicator and Cartridge is also given, and additional cost of Rs.0.60 shall be allowed as additional cost of packing for each the item. For inhaler using cartridge, double the conversion cost norms for capsules shall be allowed. For respules, norms for ampoules shall apply,” the notification said.