The Central Government is likely to announce plans to effect fundamental changes in the functioning of National Pharmaceutical Pricing Authority (NPPA). The decision has come after successive committees on drug price control expressed doubts over the effectiveness of NPPA's current role in checking medicine prices.

As per the government plan, the entire structure and working pattern of NPPA may be re-looked to turn it into more functional. The government may also consider the inclusion of industry representatives in the committee that would be set up to suggest measures to improve NPPA's functioning.

The first attempt would be to ensure that NPPA is having an e-linkage with the state drug regulatory authorities for effective enforcement of its directives. Following the recommendations of the Pronab Sen Committee, the government may ensure sufficient funds for developing proper infrastructure (computer network) in all state level drug price-monitoring wings. Increasing the staff strength of NPPA, reviewing all price fixation norms that is currently followed and ensuring more accountability to the agency would be the first priority before the government, it is learnt.

As pharmabiz reported earlier, the government has been receiving several suggestions from the state drugs control departments to sanction special funds to the state drug control authorities for activating and properly running the DPCO cells in the respective states. They had wanted the establishment of funding plans similar to that exists in the National Capital Regions, where central government provides funds for DPCO cells to states that comes within the NCR.

The Sandhu Committee on Drugs Pricing in its report had also highlighted this issue and had wanted every state drug controller to set up a unit with some officers dedicated for the work of implementation of Drugs (Prices Control) Order. The committee had also noted the states' demand that for allotment of funds for at least five years to make this possible.

The government decision is known to be much in tune with these recommendations.