Question : RISE IN PRICES OF MEDICINES DRUGS

(a) the manner in which and the factorstaken into account for determining themanufacturing cost and the retail prices ofmedicines/drugs including essential and lifesaving drugs;

(b) whether the prices of medicinesincluding life saving and essential medicineshave increased manifold during each of thelast three years and the current year;

(c) if so, the details thereof and thereasons therefor; and

(d) the mechanism put in place to reviewand regulate the prices of medicines/drugsand the remedial steps proposed to be takento provide such medicines at reasonable/affordable prices to the consumers?

MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI NIHAL CHAND)

(a) to (d): Under provision of the Drugs (Price Control) Order, 2013 (DPCO, 2013)the prices of scheduled formulations, which are based on National List of Essential Medicines 2011 (NLEM) issued by the Ministry of Health & Family Welfare, are required to be fixed based on “market based data” and not on the basis of manufacturing cost of the medicines.

There are 680 essential medicines specified in the NLEM, 2011 and the same have been brought under price control under DPCO, 2013. Out of these,National Pharmaceutical Pricing Authority (NPPA) has fixed / notified the ceiling prices in respect of 440 medicines upto 30th June, 2014 under provisions of the said order. Significant reduction in prices have been effected on the medicines notified under DPCO, 2013 as compared to the highest price prevalent prior to price fixation. The overall profile of price reduction is as under:-

 
 % reduction	No. of with respect	drugs to Highest Price to Retailer 0
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