The National Pharmaceutical Pricing Authority (NPPA) has fixed the retail prices for 51 pharmaceutical formulations. These prices are exclusive of Goods and Services Tax, if applicable. These prices were notified on 28th June, 2023.
The existing manufacturers of scheduled formulations whose Maximum Retail Price (MRP) is already lower than the ceiling price are instructed to maintain their current MRP.
Manufacturers may include GST in the price of scheduled formulations only if they have actually paid it or if it is payable to the government based on the ceiling price.
The ceiling price for a pack of scheduled formulations should be determined by the concerned manufacturer in accordance with the ceiling price specified. Manufacturers are required to issue a price list in Form-V from the date of notification, as per the Drugs Price Control Order (DPCO), 2013, to the NPPA through IPDMS. A copy of the price list should also be submitted to the State Drug Controller and dealers.
Furthermore, every retailer and dealer must prominently display the price list, including any supplementary price list provided by the manufacturer, in a visible area of their premises. This ensures easy access for customers who wish to review the prices.
In cases where an existing manufacturer of scheduled formulations launches a new drug they must seek prior price approval for the new drug from the NPPA. This can be done by submitting Form I as specified under Schedule-II of the DPCO, 2013.
Manufacturers of the aforementioned scheduled formulations are also required to provide quarterly returns to the NPPA regarding production, import, and sale of the scheduled formulations using Form-III of Schedule-II of the DPCO, 2013 through IPDMS. Additionally, any manufacturer planning to discontinue production and/or import of a scheduled formulation must inform the NPPA at least six months prior to the intended date of discontinuation, using Form-IV of Schedule-II of the DPCO, 2013.
Manufacturers failing to comply with the ceiling price and the mentioned guidelines will be liable to deposit the amount they overcharged, along with applicable interest.
Consequently, with the issuance of the ceiling price for the specified formulations, any previous price orders fixing the ceiling or retail price stand superseded.