The National Pharmaceutical Pricing Authority (NPPA) has fixed / revised the prices of 44 scheduled bulk drugs and 333 formulation packs. The revision was mainly on account of the changes in the peak rates of customs duty as announced in the Union Budget 2006-07. As per the NPPA notification, the prices of bulk drugs Carbamezapine and its derivative Oxcarbazepine Iodochlorohydroxyquinoline (ICHQ), Cefotaxime Sodium (Sterile), Famotidine, Cefazoline Sodium, Pentazocine, Ephedrine and its derivative Pseudo Ephedrine and Cefadroxyl Monohydrate were among the fixed ones.

Prices were revised downward in case of bulk drugs Carbamezapine and Cefotaxime Sodium (sterile) from Rs 3080/kg to Rs 2180/kg and from Rs 8632/kg to Rs 7285/kg resulting in reduction of 29.22% and 15.60% respectively. The revision was done after a cost cum techno economic study. The prices of bulk drugs Famotidine, Cefazoline Sodium (Sterile), Pentazocine, Ephedrine, Pseudo Ephedrine, were revised to Rs 1358/kg, Rs 7966/kg, Rs 24710/kg, Rs 1062/kg, Rs 1761/kg from Rs1673/kg, Rs.9398/kg., Rs.33663/kg., Rs.1314/kg., and Rs.1967/kg respectively based on available information. The revision will result in decrease in the prices of these bulk drugs by 18.83%, 15.24%, 26.60%, 19.18% and 10.47% respectively. This is likely to result in reduction of prices of respective formulations in the range of 2% to 28%.

Prices of bulk drugs ICHQ and Cefadroxyl Monohydrate were revised upward from Rs.702/kg and Rs.2303/kg to Rs.832/kg and Rs.2474/kg respectively, resulting in increase of 18.38% and 7.43% respectively. This may lead to increase in the prices of respective formulations by 2% and 7%. The revision of price of ICHQ was done based on cost cum techno economic study while the price Cefadroxyl Monohydrate was revised upwards on account of increase in prices of input costs. The price of Oxcarbazepine which is a derivative of bulk drug Carbamezapine was fixed for the first time at Rs.3280/kg based on available information.

The NPPA has also revised the prices of 25 Bulk Drugs and 9 Derivatives as per following details due to reduction in the Customs Duty as announced in the Union Budget for the year 2005-06. This Suo-moto exercise has been carried out in order to pass on the benefit of reduction of duties to the consumers at large. The reduction in the prices range from 0.02% to 3.17%

The Authority approved prices in respect of 333 formulation packs. Of these, Ceiling Prices in respect of 113 formulation packs have been fixed under DPCO, 1995 in order to extend the same price for more than one Unit manufacturing the similar formulation. The prices of 220 non-ceiling packs have also been approved by the Authority. Prices were also approved by the Authority for 234 formulation packs for the first time. The price reduction cases cover formulations based on the bulk drugs Sodium / Procaine / Benzethine Penicillins, Chloroquine, Ibuprofen, Pseudoephderine, Salbutamol, Theophylline, Etophylline, Betamethasone Alcohol / Phosphate / Velerate, Cloxacilline, Insulin etc

The decision was taken at the 85th meeting of NPPA held on March 23,2006 in Delhi.