IDMA has submitted a list of case studies of APIs under DPCO to justify its demand for a price hike following an unprecedented rise in prices of raw materials due to the short supply from China.

As per the IDMA case study, total cost of cefazolin sodium sterile per kg is Rs 8593.39 while the DPCO rate is Rs 5915. The cost of cefadroxil monohydrate is Rs 3649.80 while the DPCO allowed rate is Rs 2758 and the cost of cloxacillin sodium sterile per kg is Rs 2509.53, the DPCO has fixed the rate at Rs 1891. In the case of cloxacillin sodium, the DPCO rate is Rs 1346, while the cost of the product is Rs 1709.44, the case study says.

The IDMA has also sent to the union chemicals ministry a list of bulk drugs whose prices have increased substantially during the last some months due to the short supply from China.

The IDMA list of increased bulk drugs prices:
View Table Information

The list also includes the details of the price variation of non-scheduled bulk drugs, packaging materials, pharmaceutical excipients and costs of utilities during the last some months.

IDMA's cumbersome exercise in this regard comes after the rejection of its demand for a unilateral upward revision of prices of thousands of formulations and 33 bulk drugs which the NPPA had suo-moto reduced on March 20, 2008 due to revision in the excise duty/CVD, and also due to the appreciation of rupee against US dollar which stood at Rs 40.26 at that time.

Rejecting the industry demand for a suo moto upward price revision, the NPPA has asked the individual companies to come and file a price revision application.