IHS Global Insight Perspective | |
Significance | The National Pharma Pricing Authority (NPPA) has announced its first set of revisions for 2010, which are set to affect the price of 10 bulk drugs and 85 formulations over the next 15 days. |
Implications | The revisions, as usual, are a mixed bag, with the bulk-drug revisions focusing on vitamin C, and formulation revisions focusing on insulin prices. |
Outlook | The revisions will ensure that vitamin C manufacturers increase their output of the product over the winter period. Meanwhile, brand-wise hikes, cuts, and inclusions underpin the NPPA's priority to keep the price of diabetes drugs in check. |
NPPA's Latest Bulk-Drug Revisions
The Indian drug price regulator, the National Pharma Pricing Authority (NPPA), has announced its latest revisions for 2010. The revisions affect the price of 10 bulk drugs, with most receiving a price hike ranging from as low a 0.2% to 70%. The bulk drugs that have received price hikes are vitamin A and its derivatives (excluding vitamin acetate in oily liquid), norfloxacin, pentophylline, vitamin c and its derivatives, and famotidine. Vitamin acetate in oily liquid has received a price cut of 6.5%, while phenylbutazone will remain at the same price as in 2004.
NPPA's Bulk Drug Revision, 22 January 2010 | |||
Bulk Drug | Unit | Ceiling Price (rupees) | % Change (compared to 2008 rates) |
Vitamin A palmitate (oily liquid) | 1,000 MIU | 2,610.00 | 0.2 |
Vitamin A acetate (oily liquid) | 1,000 MIU | 2,144.00 | -6.5 |
Vitamin A acetate (dry powder) | 1,000 MIU | 3,185.00 | 7.7 |
Norfloxacin | 1 Kg | 1,052.00 | 25.1 |
Pentoxyphylline | 1 Kg | 1,926.00 | 14.9 |
Vitamin C (plain) | 1 Kg | 613.00 | 67.5 |
Vitamin C (coated) | 1 Kg | 600.00 | 70.0 |
Sodium ascorbate | 1 Kg | 645.00 | 69.3 |
Famotidine | 1 Kg | 1,343.00 | 28.9 |
Phenylbutazone | 1 Kg | 352.00 | 0.0 |
Source: NPPA | |||
NPPA's Latest Formulation Revisions
The drug price controller's revisions for 85 formulations are also a mixed bag of price hikes and cuts. Key formulations affected by the price revisions are Pfizer (U.S.)'s inflammatory drugs Medrol, Solu-Medrol, and Depo Medrol (methyl prednisolone), for which various dosage forms have received price cuts in a range of 0.03–2.37%. Novartis (Switzerland)'s multivitamin Vitalux Plus and Shreya Life Sciences (India)'s Recosulin (oral insulin) are other key drugs that have received price cuts. Key price hikes also include insulin products, with domestic firm Torrent Pharma's Human Mixtard, Human Insulatard, and Human Actrapid receiving price hikes in the range of 6%.
New dosage forms of insulin, namely of Lupisulin (by Indian firm Lupin), and Biopharma (also India)'s Biosulin have been brought under the purview of price control.
Both the bulk and formulation price revisions will be effective in the next 15 days.
The NPPA's latest price revisions can be found by clicking here and accessing the "What's New" section.
Outlook and Implications
The announcement represents the NPPA's first set of revisions for the year; although they follow the regulator's usual trend in being a mixed bag. In terms of the bulk drugs, vitamin C has once again been in the spot light, with the NPPA set to ensure that there is no shortage of this product during the winter. Previous revisions announced in September also focused on this product, but at the formulation level, with several manufacturers allegedly completely shutting down or reducing production due to unviable margins. The above-mentioned high price hike announcement is therefore set to encourage manufacturers to increase output of this product back to normal levels.
In terms of formulations, insulins have once again been one of the key focuses of the regulator, witnessing brand-wise hikes and cuts; as seen above, the NPPA's purview on these drugs is also growing, with newer dosage forms added to the direct price-control list. As was the case in the September 2009 revisions, Lupisulin and Recosulin are part of the revision list, with the latter receiving price cuts yet again. Usual suspects—Pfizer's Medrol and Novarits' Vitalux—are part of the list, however this time they have received price cuts.
Meanwhile, the price formulations containing dextropropoxyphene HCL and dextropropoxyphene napsylate have been revised in line with the bulk drug revisions announced previously in 2009.
The above price alterations only represent the first of several revisions to follow, with the industry growing accustomed to the NPPA's irregular revision announcements.
Related Article
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