The National Pharmaceutical Pricing Authority (NPPA) has approved the proposals for revision of norms for conversion cost (CC), packing charges (PC) and process loss (PL) and packing material (PMC) under para 7 of DPCO, 1995. Based on the implementation of revised norms, there would be increase in prices of formulations varying from 0.55% to 1.2% in the case of tablets, capsules, liquids and ointments whereas in the case of ampoules and vials there may be reduction in price by 0.74% as per projections.

The authority has also approved the proposal of revising the PMC norms for adoption in price fixation of formulation cases based on an exercise undertaken by the NPPA in line with the recommendations of NIPER on consumption norms submitted earlier. The norms relating to tablets and capsules packed in aluminium strips and blisters remain more or less the same. An increase has been observed in respect of glass items upto 15% as per the revised norms. In this regard, the authority has also noted that PMC is only one cost factor and the same is not applied in isolation. Therefore, the final prices of concerned formulations may not be increasing to that extent.

The 83rd meeting of NPPA held here on December 27, 2005 announced the revision of the prices of six bulk drugs coming under the scheduled category. It also considered and approved 38 cases of pricing of insulin formulation imported in finished form.

The prices of bulk drugs sodium penicillin G, procaine penicillin G, benzathine penicillin G, phenramine maleate, trimethoprim, pentoxyphylline, phenylbutazone, frusemide and rifampicin were considered in the meeting. After detailed cost cum techno economic study, the existing prices of following bulk drugs have been revised downwards; sodium penicillin G from Rs. 1207/BU to Rs. 824/BU, procaine penicillin G from Rs. 1357/BU to Rs. 971/BU, and benzathine penicillin G from Rs. 2469/kg to Rs. 2055/kg. This works out to a downward revision of 31.73%, 28.45% and 16.77% respectively in comparison to the earlier notified prices.

While the prices of bulk drugs pheniramine maleate, trimethoprim, rifampicin were revised to Rs. 1107/kg, Rs. 840/kg, Rs. 3560/kg from the existing notified prices of Rs. 1068.kg., Rs. 700/kg and Rs. 3480/kg respectively. The prices were revised after conducting a cost price study. The increase works out to 3.65%, 20% and 2.30% respectively. The increase is mainly due to the rise in prices of input raw materials. It is estimated that the prices of medicines based on bulk drug pheniramie maleate will go up by 1 to 2 %, those based on bulk drug trimethoprim would increase by 4 to 5%, while rifampicin based medicines are expected to show an increase of about 2%.

The authority decided that in respect of bulk drugs pentoxyphylline, phenylbutazone and frusemide the existing price be continued.