Govt withdraws power of regulator to fix drug prices

The Department of Pharmaceuticals has withdrawn guidelines issued on May 29.

The Department of Pharmaceuticals, under India’s Ministry of Chemicals and Fertilizers, directly controls the NPPA. Reuters

India has withdrawn the drug pricing authority’s powers that allowed it to fix the prices of medicines not deemed essential, after its decision to impose price caps on more than 100 drugs in July triggered industry protests.

The Department of Pharmaceuticals has withdrawn guidelines issued on May 29 that gave the National Pharmaceutical Pricing Authority (NPPA) the powers to fix the prices of drugs that are not on the essential medicines list, the latter said in a notice late on Monday.

The Department of Pharmaceuticals, under India’s Ministry of Chemicals and Fertilizers, directly controls the NPPA.

Story continues below this ad

The NPPA had issued a notice in July imposing price caps on 108 non-essential drugs, which are used to treat diseases ranging from diabetes to HIV/AIDS. The move has been challenged by the industry lobby groups in courts.

India’s withdrawal of drug price cap guidelines to be on prospective basis

India’s decision to withdraw the drug pricing authority’s powers to fix the prices of non-essential medicines will be on a prospective basis, and will not affect price caps imposed in July on 108 drugs, a senior government official said on Tuesday.

The official in the drug pricing authority declined to be named due to the sensitivity of the matter.

Story continues below this ad

The Department of Pharmaceuticals withdrew guidelines issued on May 29 that gave the National Pharmaceutical Pricing Authority (NPPA) the powers to fix the prices of drugs that are not on the essential medicines list, the latter said in a notice late on Monday.

“It’s a prospective withdrawal, not a retrospective withdrawal” the official told Reuters.