This control order was introduced back in the s for the first time the government placed limits on the profitability of pharmaceutical companies. The objective of DPCO is to ensure availability of essential and life saving and prophylactic medicine of good quality at the reasonable prices. It is promoting the rational use of the drugs in the country to enhance cost-effective production with economic sizes. Why it came into effect? Some pharma companies started to increase prices of their products to get maximum ROI and it was affecting the normal user. When it came in the eyes of the Government that the pharmaceutical companies are raising their prices of most selling products which should be affordable to the users.
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Some say that 45 days is a very short time window for companies to comply. Shan had previously blogged about draft NPPP over here. See here and here to read our previous posts on this. Bitter pill? Which drugs will come under price control?
Earlier in March this year the Department of pharmaceuticals DOP had issued a draft proposal on price negotiation of patented drugs. Readers may remember that we had posted about this here. Prices of formulations spanning over 27 therapeutic classes are regulated by DPCO Prices of some additional anti-cancer drugs including the much talked about Imatinib, Carboplatin, Dacarbazine, Daunorubicn, Chlorambucil, Oxaliplatin and some anti-retroviral cocktails like Zidovudine-Lamivudine-Nevirapine and Stavudine- Lamivudine will now be regulated by the current order.
New pricing methodology Previous DPCO order regulated drug prices based on the manufacturing costs stated by their manufacturers. This shifts the ceiling price calculation from a cost based to a market based method. But, critics read patient groups argue that the previous price regulation method i. Some industrialists contend that the ceiling price calculation should have been based on a weighted average of prices instead of the simple average formula as currently proposed as the simple average formula fails to provide a level playing field between different companies.
After the DPCO many manufacturers withdrew from market and production levels of many essential drugs fell below critical levels. After some lessons learnt the hard way the Govt has incorporated sufficient provisions in the current DPCO to definitively preempt the possibility of an essential drug going off market. Well this ought to trigger innovation in pharma industry! Relevant excerpts from the order: Non—application of the provisions of this order in certain cases: i a manufacturer producing a new drug patented under the Indian Patent Act, 39 of product patent and not produced elsewhere, if developed through indigenous Research and Development, for a period of five years from the date of commencement of its commercial production in the country.
Here again the key factor will be effective enforcement of the order. Past record of enforcement paints a sorry picture with blatant disregard and open violations of the DPCO provisions. More from my site.
Drug price control order (DPCO) 2013 : What’s in store?
SpicyIP In the light of the order of the Supreme Court, it was decided that a fresh Pharmaceutical Pricing Policy be formulated and accordingly, the Drug Policy was never implemented and the Drug Policy continued to be applicable. My saved default Read later Folders shared with you. There is no control on the launch price of the non-scheduled formulations. Describing the measures taken to prevent overcharging of medicines, Shri Mandaviya stated that NPPA is effectively monitoring the prices of scheduled as well as non-scheduled medicines under DPCOso that these formulations are available to public at ceiling prices notified and increase in price is limited to the provisions of DPCO Thus, considering the fact that the price domain of pharmaceutical market being leased by the policy has bought along both pros and cons across the country, however, it is worth appreciating that the Government has been prompt in taking initiatives and put further efforts to harmonize the benefit of both aspects i. Para 4 of the DPCO provides formula for the calculation of ceiling price of a scheduled formulation as follows — Step1.
Drug Price control Order (DPCO) Act
Out of Pocket expenditure on health is highest. The final outcome will be a healthy population. Section 3 of the Essential Commodities Act, , 10 of B. Drug Price Control Ordering Ministry: Ministry of Chemicals and Fertilisers, which is the main nodal administrative ministry for pharmaceutical companies. A total of medicines have been added, and 70 medicines have been deleted to prepare NLEM which now contains a total of medicines. There are medicine formulations listed for all levels of health care P, S, T , medicine formulations for secondary and tertiary levels S, T and 79 medicine formulations for the tertiary level T. It is to be noted that formulations of certain medicines are listed at different levels but as item, they are counted as one.
Dpco -Nlem'2013 - Nppa New Ceiling Price - Drug List - Upto 23.06.13
DPCO DRUG LIST 2013 PDF