Annual Patient Savings of Rs 3,788 Crore Due to Drug Price Reductions: Government
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Synopsis
The average reduction in drug prices in India has saved patients Rs 3,788 crore annually, as reported in Parliament. The NPPA regulates these prices, ensuring affordability and access to essential medicines through various initiatives.
Key Takeaways
- Estimated annual savings of Rs 3,788 crore for patients.
- Average price reduction of 17 percent under NLEM, 2022.
- NPPA sets ceiling prices for scheduled medicines.
- PMBJP offers medicines at 50%-80% lower prices.
- Target expansion of products under PMBJP by 31.3.2025.
New Delhi, March 18 (NationPress) The average reduction in drug prices, resulting from the fixation or adjustment of prices, has led to an estimated annual savings of around Rs 3,788 crore for patients, the Parliament was informed on Tuesday.
Union Minister of State for Chemicals and Fertilisers, Anupriya Patel, stated in a written response in the Rajya Sabha that the National Pharmaceutical Pricing Authority (NPPA), part of the Department of Pharmaceuticals (DoP), sets ceiling prices for these scheduled medications following the guidelines of DPCO, 2013.
All manufacturers and marketers of scheduled drugs must sell their products at or below the ceiling price (including applicable Goods and Service Tax) established by the NPPA.
Additionally, the NPPA determines the retail prices of new medications, as defined in DPCO, 2013.
For non-scheduled formulations, manufacturers cannot increase the maximum retail price of their drugs by more than 10 percent within the preceding 12 months.
As of March 12, ceiling prices for 928 scheduled formulations and retail prices for over 3,200 new drugs had been established by the NPPA.
The average price cut due to price fixation or adjustment under NLEM, 2022 was approximately 17 percent, Patel reported.
In addition to price regulations, the government has improved access to affordable essential medicines through the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), which provides quality medicines through Jan Aushadhi Kendras (JAKs) at prices typically 50 percent to 80 percent lower than those of branded market medicines.
Under the Affordable Medicines and Reliable Implants for Treatment (AMRIT) initiative, medicines, implants, surgical disposables, and other consumables are offered at significant discounts of up to 50 percent off market prices through AMRIT Pharmacy stores, the minister noted.
Currently, the PMBJP scheme includes 2,047 medicines and 300 surgicals, medical consumables, and devices, covering major therapeutic categories such as cardiovascular, anti-cancer, anti-diabetic, anti-infectives, anti-allergic, gastro-intestinal medicines, and nutraceuticals.
“The Department of Pharmaceuticals aims to expand the product basket to 2,100 medicines and 310 surgicals, medical consumables, and devices by 31.3.2025,” the minister added.
