The National Pharmaceutical Pricing Authority (NPPA) has approved a 50% increase in the ceiling prices of 11 essential drug formulations, invoking extraordinary powers under Paragraph 19 of the Drug Price Control Order (DPCO), 2013. This decision, taken in the public interest during a full authority meeting on October 8, 2024, aims to ensure the continued availability of crucial medications used in public health programs across India.

The NPPA's move comes in response to applications from pharmaceutical manufacturers citing the rising cost of Active Pharmaceutical Ingredients (APIs), increased production expenses, and unfavorable exchange rates. Several companies had also requested discontinuation of certain formulations, deeming them unviable under current price regulations.

The drugs affected by the price revision are low-cost, first-line treatments for a range of serious conditions, including asthma, glaucoma, thalassemia, tuberculosis, and mental health disorders. The formulations impacted by the 50% price increase include Benzyl Penicillin (10 lakh IU injection), Atropine (0.6 mg/ml injection), Streptomycin (750 mg and 1000 mg powder for injection), Salbutamol (2 mg and 4 mg tablets and 5 mg/ml respirator solution), Pilocarpine (2% drops), Cefadroxil (500 mg tablet), Desferrioxamine (500 mg for injection), and Lithium (300 mg tablets).

In announcing the decision, the NPPA emphasized the need to balance affordability with the availability of essential medicines, stating that the price hike is necessary to maintain sustainable production and marketing of these drugs. "The increase is aimed at ensuring that crucial medications remain accessible to the public, despite the rising costs faced by manufacturers," the NPPA said.

This is not the first time the NPPA has used its extraordinary powers under DPCO, 2013. Similar price hikes were approved in 2019 and 2021 for 21 and 9 formulations, respectively, to ensure the availability of essential drugs for public health needs.

The NPPA continues to uphold its mandate of ensuring affordable access to essential medicines while preventing shortages in the market. The latest price revision is expected to prevent disruptions in the supply of vital treatments for millions of patients across the country.