The National Pharmaceutical Pricing Authority (NPPA) has embarked on an ambitious programme to computerise its entire operations for effective monitoring of drug prices. The authority has entrusted C-DAC, a Central Government agency, to take up the job of developing appropriate software necessary for day-to-day monitoring of drug prices.

According to sources, C-DAC has already submitted a techno commercial proposal for the development of the software to NPPA. The proposal is awaiting final clearance from the Department of Chemicals and Pharmaceuticals. The NPPA hopes that the exercise of computerization of day-to-day work of the authority can be completed within six months of receiving the final go ahead nod.

The authority is also in consultation with the ORG-IMS for routine supply of drug price data sourced from the retail markets. The idea is to intensify NPPA's monitoring on scheduled formulations. The current price monitoring mechanism of NPPA is heavily dependent on the price list supplied by the companies. It also acts upon the information provided by the state drug authorities and the complaints received from the public, NGOs etc. The tie- up with ORG-IMS would mark a major change from this system as NPPA would have direct access to the actual retail price. ORG-IMS would constantly oversee the prices and supply the data to NPPA. Sources informed that the proposal, once materialized, would ensure that the prices of scheduled formulations fixed by NPPA are followed by the industry and in every case of deviation, appropriate action could be taken without delay.

The preparation of Pharmaceutical Price Index is another major exercise aimed at bringing transparency in drug prices. The index, expected to have a periodicity of one month, would be based on the price to the retailer. While the wholesale price index is a reflection on price changes in respect of a large number of goods and services, the proposed pharma index would be confined to price movements within the pharma spectrum. NPPA intends to prepare an index of 1500 medicines derived from around 100 therapeutic segments in the beginning. Price data would be based on the data provided by ORG-IMS. The methodology and software developments are expected to be finalised soon.