National Pharmaceutical Pricing Authority (NPPA) has fixed prices of 18 formulation packs under Drug Price Control Order (DPCO)- 2013. The essential drugs capped are meant for treatment of diabetes, hypertension and pneumonia.

The drug price regulator has brought these medicines under price regulation using paragraph 5 of the Drugs Price Control Order (DPCO), 2013. As per the DPCO- 2013, the prices have been fixed based on the weighted average of maximum retail price (MRP) of all medicines available in that particular therapeutic segment with at least 1 per cent market share.

DPCO, 2013, which came into effect around May 2014, initially brought under price control 652 medicine packs based on 348 formulations of essential medicines as notified by the government under the National Pharmaceutical Pricing Policy. However, industry executives said in the past 18 months, the span of price control had expanded to entail more than 700 medicine packs.

As per the DPCO, if any medicine was priced lower than the ceiling fixed by the regulator, then companies selling such drugs should maintain the existing or lower retail price. It is likely the government will try to expand the list to include more new medicines under price control to make live saving drugs affordable and accessible for patients.

In case any company fails to comply with the retail price as prescribed by the NPPA, then "the concerned manufacturer/ marketing company shall be liable to deposit the overcharged amount along with the interest thereon under the provisions of the DPCO, 2013", the regulator said in a recent order. It also stated that if a company was planning to discontinue manufacture or sale of any of these medicine, then it would have to seek permission from the regulator six months in advance.

The recent price capping will provide consumers cheaper drugs for critical diseases like diabetes and hypertension. On the other hand, NPPA is likely to keep a check on companies trying to launch price controlled formulations under new and different brands after minor changes in the composition or dosage.