In its first price revisions for the year 2012, India's National Pharmaceutical Pricing Authority (NPPA) has revised the prices of 183 formulations and two bulk drugs.
IHS Global Insight Perspective | |
Significance | In its latest revisions, India's National Pharmaceutical Pricing Authority (NPPA) has revised the price of 183 formulations and two bulk drugs. |
Implications | The announced price revisions are the NPPA's first for 2012. |
Outlook | As usual, the revisions are a mixed bag of both price hikes and cuts. |
NPPA's Latest Price Cut Mixed
India's drug price regulator—the National Pharmaceutical Pricing Authority (NPPA)—has announced its latest price cuts for the year. The regulator has engaged in price revisions for 183 formulations and two bulk drugs. The price revisions have been a mixed bag, with both price increases and decreases. For example, vitamin C and its derivatives have had their prices reduced from by 33% to 409 Indian rupees (USD7.79) per kg for vitamin C (plain), by 30.2% to INR419 per kg for vitamin c (coated) and 27.3% to INR469 per kg for sodium ascorbate. Meanwhile, the price of parachlorometaxylenol (PCMX) was revised upward from INR305 to INR309 per kg, according to Pharmabiz.com.
The price revisions made against formulations saw Indian firm Wockhardt's Wosulin receive price increases across the board, in the range of 1.6–2.6%. Other formulations for which ceiling prices have been set were: carbamazepine, famotidine, sulphasalazine, lincomycin, aspirin with combination, ibuprofen with combination, pseudoephedrine with combination, multivitamins, silver sulphadiazine with combination, quiniodochlor, betamethasone with combination, gentamycin with combination, oxytetracycline with combination, pentazocine with sodium chloride, dexamethasone with combination, monocomponent human insulin, Pred Forte (prednisolone acetate 1%), and prednisolone acetate ophthalmic suspension.
Outlook and Implications
The aforementioned revisions are the NPPA's first for 2012. This is quite late given that the NPPA's unannounced price revision began as early as January last year. This is surprising given the NPPA's stringency in terms of price controls has been on the increase. As is usually the case, the revisions have been both upward and downward for affected drugs. The revision of the vitamin C bulk drug price is likely to have been the main factor behind the new ceiling prices for multivitamin formulations. Insulins are a popular target for price revisions by the NPPA, although they have received price hikes during the past couple of revisions. The aforementioned price revisions are set to be effective in 15 days from date of notice.