The National Pharmaceutical Pricing Authority Fixes the Ceiling Price for ‘Ibuprofen’

The National Pharmaceutical Pricing Authority (NPPA) set up by the Ministry of Chemicals and Fertilizers issued an order dated June 26, 2019, fixing the Ceiling Price as Rs. 2.62 per capsule for ‘Ibuprofen’ (Schedule Formulation) 200 mg Capsule. The price fixed is exclusive of goods and services tax, if any, applicable to Schedule Formulation. The Authority has issued following directions to be complied with:

1. All the manufacturers of Schedule Formulation are required to revise the prices of Schedule Formulation who were selling the branded or generic or both the version of Schedule Formulation at a price higher than the ceiling price plus goods and services tax as applicable, not exceeding the ceiling price fixed plus goods and services tax as applicable, if any.
2. All the manufacturers of Schedule Formulation who were selling the  at MRP lower than the ceiling price fixed plus goods and services tax as applicable, if any, shall continue to sell it on the existing MRP.
3. The manufacturers will add goods and services tax only if they have actually paid it or is payable to the Government on the ceiling price.
4. Every manufacturer of Schedule Formulation is required to issue a price list in Form V from the date of the notification to NPPA and is also required to submit a copy to State drug Controller and Dealers.
5. Every retailer and dealer shall display a price list on a conspicuous part of the business premises to provide access to any person seeking assistance on it.
6. If any manufacturer of Schedule Formulation launches a new drug, such manufacturer shall take the prior approval of NPPA in Form I as specified in Schedule II to Drugs (Prices Control) Order, 2013.
7. All the manufacturers of Schedule Formulation shall furnish quarterly returns to NPPA in Form III of Schedule II to Drugs (Prices Control) Order, 2013, regarding the production, import and sale of Schedule Formulation.
8. Any manufacturer, who intends to discontinue the production, import of sale of the Schedule Formulation, shall furnish information to NPPA in Form IV of Schedule II to Drugs (Prices Control) Order, 2013, at least 6 months prior to the intended date of such discontinuation.

Any Manufacturer who fails to comply with the ceiling price and directions issued shall be liable to deposit overcharged amount along with interest thereon under the provisions of the Drugs (Prices Control) Order, 2013 read with Essential Commodities Act, 1955.

To read the full notification click here