National List of Essential Medicines (NLEM) is a list of medicines Under the provisions of DPCO , prices of the drugs in NLEM. Drug Price Control Order & case study of costing two pharmaceutical formulation. DPCO The government has notified the DPCO under NLEM (National List of Essential Medicines) Formulations with. in ceiling prices of drugs under NLEM under Para 19 of the DPCO bring more medical devices under the National List of Essential Medicines ( NLEM).

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The latter may result in the scarcity of a particular essential medicine formulation unless it is already overpriced relative to the cost of the bulk medicine used. A comparision of medicine prices.

Worse, this may result in the bulk medicine or the druga not being made within the country. The Drug Policy ofas implemented through the Drugs Prices Control Order,was introduced in the context of the liberalization of economy and the abolishment of industrial licensing, as well as allowing of foreign investment in the country, including in the drug industry.

More from this Firm. No HTML formatting and links to other web sites are allowed. In any case, MRP at no point in time can exceed ceiling price plus local taxes.

Interested in the next Webinar on this Topic? We note that the earlier notifications for essential medicines excluded several dosage forms and strengths because they did not feature in the National List of Essential Medicines NLEM It also has powers to revise either increase or decrease the ceiling undeer or retail price of the drug which is already fixed and notified, irrespective of annual wholesale price index for that year based on which companies are automatically permitted under DPCO to revise the prices annually [6].

In most low income countries pharmaceuticals are the largest public expenditure on health after personnel costs and the largest household health expenditure. The e-commerce sector has grown exponentially over the last decade and has revolutionised the interplay between internet and commerce worldwide.

The monthly market turnover reports of IMS Health a Undet based company that provides information, services and technology for the healthcare industry and the information furnished by individual manufacturers are utilized for the purpose of monitoring prices of non-scheduled formulations. These antibiotics are sold to a patient six to seven times higher of its actual purchase. In the era lisf all daily needs price rates, medicine will give some concession.

Although this notification of NPPA will give some relief to patients in the chronic disease sector in the present context, it should be expanded and rationalized. As per Para 19 of the DPCO, the Government may, in case of extra-ordinary circumstances and in public interest, fix the ceiling price or retail price of any drug, whether scheduled or non-scheduled or a new drug for such period, as it may deem fit.


A conference xrugs the draft pharmaceutical policy is being organised by the Department of Pharmaceuticals on August 30 where various Ministries are expected to present relevant ot of the uhder to stakeholders for feedback. Price controls are applicable irrespective of whether it is generic or branded [7]. For non-scheduled formulations medicines not under price control there ilst no control over the launch price.

The draft policy gives the impression of a policy cobbled to satisfy perfunctorily the Supreme Court Orders of March and Octoberone that will leave major dcpo mostly unaffected.

That will be one that brings down the prices of overpriced medicines; that has some linkage to the actual cost of production, and therefore to the cost of the raw material; and does not legitimise overpricing of medicines.

Drug Price Control Orders (DPCO)

Prices of medicines can be brought down to one half, even to one-fourth immediately, if the government takes appropriate measures to stop reckless profiteering and waste that are prevalent in the manufacture and sale of medicines.

The listed drugs may come under DPCO and there price will reduced to minimum cost for patients of India. Under the latest DPCOthe prices of drugs appearing in the National List of Essential Medicines covering around formulations have been brought under the purview of price control [9].

Making India sufficiently self-reliant in end to end indigenous drug manufacturing; d. Meropenem 1gm is supplied to Nursing homes or even a govt institution rate between Rs. The draft policy identifies the following key objectives:.

It also has made calculating ceiling prices of the many medicines not in NLEM a tedious, if not impossible, exercise. Thus, as per NPPP, the three aspects of the regulation of prices of drugs are as follows:. Undoubtedly, it is unrer of the significant responsibilities of the Government to consider necessary steps in order to improvise the health sector of the country, however it is expected that in doing so, the Government should not overlook those considerable factors that could prove to be adverse consequences of the post era of the implementation of such steps in the longer run and should be diligent in the proper delegation of powers to the authorities.

Allopathy medicines are much sought after by the patients and that gives free hand to the manufacturers of important drugs to charge lixt as unser their whims and fancies. S K Dixit 19 Jun Under DPCOs, particularly during the earlier DPCOs when the bulk drugs prices were fixed alongside their related formulations, some companies either stopped producing the particular formulation or started producing only for export destinations.


The notifications for the formulations two were subsequently withdrawn of these selected medicines are in addition to the notifications for essential medicines declared under the DPCO The draft policy lists certain exemptions which, again, are inexplicable: Making essential drugs accessible at affordable prices to the common masses; b.

Llst present For Respondent s Mr. The WAP idea means that it will end up legitimising high prices, especially if the top three brands are overpriced: The same thinking could have been applied to discourage irrational and unscientific medicines outside the NLEM.

Moreover, doctors hardly prescribe medicines by generic druga, but by brand. Certain exceptions such as for small scale units, drugs produced through indigenous research and development, etc were envisaged for exemption under the Policy. A number of drug companies have been found to be selling scheduled medicines at a higher price to the consumers.

List of Drugs that may come under Drug Price Control Order ( DPCO )

The term “Drug” Includes – i all medicines for internal or external use of human beings or animals and all substances intended to be used for, or in the diagnosis treatment, mitigation, or prevention of any disease or disorder 20133 human beings or animals, including preparations applied on human body for the purpose of repelling insects like mosquitoes; ii such substances, intended to affect the structure or any function of the human or animal body or intended to be used for the destruction of vermin or insects which cause disease in human beings or animals, as may llist specified from time to time by the Government by notification in the official Gazette; and iii bulk drugs and formulations.

Recent order of Government for withdrawal of the internal guidelines formulated by the NPPA under para 19 of DPCOWitnessing such outrageous response from the industry, the Government realized that the implementation of such internal guidelines formulated by the NPPA in pursuance of the powers conferred to it under Paragraph 19 of DPCO, is extremely harsh pressure on the Pharmaceutical Industry and its players as it adversely disturbed and get in the way of the smooth operation of the industry.

Good to be True, but True! Ceiling price of a scheduled formulation in case of no reduction in price, due to absence of competition or cartelisation of a few players, is fixed by making certain adjustments as suggested in the DPCO.