Latest news with #NPPA
Economic Times
a day ago
- Business
- Economic Times
Medtech firms flag inflated MRPs on imported devices
Indian manufacturers of medical devices have alleged that several private hospitals and retailers, in the chase for higher margins, are pushing sales of imported products, some of which carry inflated price tags or do not mention the maximum retail price (MRP). These imported devices of established brands account for about 65% of the medical devices sold in India, according to industry matter was discussed at a recent meeting with commerce and industry minister Piyush Goyal, industry executives told ET."It has been seen that the private hospitals and retailers preferentially push imported medical devices, often labelled with inflated or absent MRPs," a senior industry executive who attended the meeting told ET. "The hospitals are doing this to earn higher trade margins compared to affordable Indian made devices." The executive did not wish to be the meeting, representatives of domestic manufacturers discussed the procurement challenges the industry is facing in this regard. "They are making higher margins and more money. The consumer would bear the brunt and, hence, this issue was discussed during the meeting. The ministry has asked the NPPA (National Pharmaceutical Pricing Authority) to look into the matter," said another executive, requesting not to be named. Rajiv Nath, forum coordinator of Association of Indian Medical Device Industry (AiMeD), said domestic manufacturers face a stiff challenge in the market from imported devices despite offering the same product at rates that are 20-40% less, "as private hospitals and retailers are preferentially pushing imported established brands of medical devices, often carrying inflated prices or at times labels even without MRPs"."Indian manufacturers are forced to hike their labelled MRP to satisfy these buyers," he said domestic manufacturers have demanded that all import e-bills of lading should capture the import landed price as well as the MRP on the medical device, and any irrationally excessive MRP of 20 to 30 times of landed cost should be flagged for investigation for duty evasion and unfair trade practices.
Mint
5 days ago
- Business
- Mint
Govt tightens oversight on drugs that are outside direct price control
New Delhi: To protect consumers from steep drug price increases, the National Pharmaceutical Pricing Authority (NPPA) has issued a directive to strictly enforce price control measures on non-scheduled drugs—those not subject to direct price caps. This means manufacturers cannot raise the maximum retail price (MRP) of these non-scheduled medicines by more than 10% in a year, as per the Drugs Price Control Order (DPCO). These drugs account for about three-fourths of India's pharmaceutical market by volume. NPPA has reiterated that companies must adhere strictly to paragraph 20 of the DPCO, 2013, which ensures that commonly used non-scheduled medicines and medical devices remain affordable for the public. Essential medicines are subject to stricter price controls. Non-scheduled formulations are those that are out of direct price control. NPPA directs these brands to immediately report any price revisions on the NPPA'sIntegrated Pharmaceutical Database Management System (IPDMS). Brands like Foracort, used to treat respiratory illnesses, Ascoril (a cough syrup), and Dexorange, used to treat nutritional deficiencies, are examples of non-scheduled formulations. The regulator also cracked down on manufacturers selling the same non-scheduled formulation under different brand names. The directive said the MRP difference between such brands cannot exceed 10%, ensuring consistency in pricing across a company's portfolio. 'The government shall monitor the maximum retail prices (MRP) of all the drugs including the non-scheduled formulations and ensure that no manufacturer increases the maximum retail price of a drug more than 10% of maximum retail price during preceding twelve months and where the increase is beyond ten percent of maximum retail price, it shall reduce the same to the level of ten percent of maximum retail price for next twelve months,' said the NPPA communication issued to manufacturers, industry association and stakeholders on 22 July. This renewed focus comes amid growing concerns over unchecked price hikes in commonly used medicines. While essential medicines have fixed ceiling prices, non-scheduled drugs—including many popular brands—remain outside direct controls but are still subject to the 10% annual cap. 'The move seeks to make healthcare more accessible and prevent manufacturers from excessive profiteering on a wide range of pharmaceutical products. Any violations will attract penalties for manufacturers,' said a pharma industry executive, requesting anonymity. Queries sent to the department of pharmaceuticals remained unanswered till press time. 'This circular is primarily on monitoring the pricing of non-scheduled formulations. Our members are already abiding by paragraph 20 of DPCO 2013, and are complying with the provisions applicable to non-scheduled formulations,' said Viranchi Shah, national spokesperson, Indian Drugs Manufacturers Association (IDMA). "This circular also has a directive to the manufacturers to align prices of multiple non-scheduled brands they manufacture or market. This may have operational issues when a contract manufacturer undertakes the manufacturing of different brands of different companies. We will seek further clarification," Shah added. The NPPA said any manufacturer found violating the provisions will face action under the DPCO and the Essential Commodities Act. 'The manufacturer shall be liable to deposit the overcharged amount along with interest thereon from the date of increase in price in addition to the penalty,' it said. According to government estimates, the Indian pharmaceutical market was valued at approximately $50 billion in FY2023-24, with domestic consumption accounting for $23.5 billion. Notably, India is the world's largest provider of generic medicines by volume, with a 20% share of total global pharmaceutical exports. It is also the third largest by volume globally for overall pharmaceutical production.
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Business Standard
7 days ago
- Business
- Business Standard
Govt to closely monitor price hikes of drugs outside essential list
The national pharmaceutical pricing regulator will keep a close watch on overcharging by drug companies for medicines outside the purview of the price control list. In an office memorandum dated July 22, the National Pharmaceutical Pricing Authority (NPPA), under the Ministry of Chemicals and Fertilisers, said, 'The Government shall monitor the maximum retail prices (MRP) of all drugs, including non-scheduled formulations, and ensure that no manufacturer increases the maximum retail price of a drug by more than ten percent of the maximum retail price during the preceding twelve months…' Business Standard has reviewed the document. The NPPA will monitor how companies are increasing prices of non-scheduled drugs. These are medicines not under direct price control, for which the NPPA fixes ceiling prices using changes in the wholesale price index, as well as market data (average price to retailers of all brands of the medicine with a market share of 1 percent or more). The prices of scheduled drugs, which are mentioned in the National List of Essential Medicines (NLEM), are fixed every year by the NPPA. In the case of non-scheduled drugs not part of the NLEM, companies are allowed to raise prices by 10 percent annually. The NPPA will now closely monitor whether these price hikes are in line with the limit. If prices are raised beyond the permissible limit, the company will be required to deposit the overcharged amount along with interest, from the date of the price increase, in addition to any penalties, the memorandum warned. Moreover, to prevent companies from launching the same medicine under different brand names at higher prices, the NPPA has directed, 'All manufacturers are hereby directed to align the prices of non-scheduled formulations launched under different brands… so that the difference in MRP is not more than ten percent.' Any violation of this rule will invite strict action under the DPCO, 2013, and the Essential Commodities Act, 1955. The office memorandum, signed by NPPA Deputy Director (Enforcement) Manisha Khuntia, has been sent to all drug manufacturers, industry associations, and stakeholders. As of September 2024, the NPPA has raised a cumulative demand of Rs 9,980.6 crore from pharmaceutical companies as penalties for overcharging in 2,545 cases. Many of these cases are currently stuck in litigation.
News18
25-07-2025
- Business
- News18
No More Steep Price Jumps: Govt Cracks Down On Non-Scheduled Medicines
NPPA monitors prices of all drugs not listed in Schedule I of the Drug Price Control Order (DPCO), 2013. These 'non-scheduled formulations' had more freedom in pricing—until now If your medicine bills have been quietly rising each year, here's some relief—India's drug pricing regulator has now stepped in to keep a close watch on such hikes. The National Pharmaceutical Pricing Authority (NPPA), under the Ministry of Chemicals and Fertilisers, has issued a fresh order to monitor how much companies are increasing the prices of non-scheduled drugs. These are medicines not under direct price control but still widely used. According to a new office memorandum of NPPA dated July 22, 2025, seen by News18, 'The Government shall monitor the maximum retail prices (MRP) of all the drugs including the non-scheduled formulations and ensure that no manufacturer increases the maximum retail price of a drug more than ten percent of maximum retail price during preceding twelve months…" In simpler terms, drug companies can't hike prices of such medicines by more than 10% in a year. If they do, they will have to bring the price back down to the allowed level and also return the extra money they charged. 'The manufacturer shall be liable to deposit the overcharged amount along with interest thereon from the date of increase in price in addition to the penalty," the memorandum warned. The NPPA monitors the prices of all drugs not listed in Schedule I of the Drug Price Control Order (DPCO), 2013. These are called 'non-scheduled formulations" and have been allowed more freedom in pricing—until now. The Drug Price Control Order (DPCO) is a law ruling prices of medicines that allows authorities to fix the prices of essential medicines and ensure they remain affordable for the public. To prevent companies from bypassing the rules by launching the same medicine under different brand names at higher prices, the NPPA has directed, 'All manufacturers are hereby directed to align the prices of non-scheduled formulation launched under different brands… so that the difference in MRP is not more than ten percent." This means whether a medicine is sold under one brand or another, its price should not differ drastically and must stay within a 10% range. Violations to be taken seriously Any violation of this rule will invite strict action under the DPCO, 2013, and the Essential Commodities Act, 1955. The NPPA's move comes at a time when many patients are feeling the pinch of rising medicine costs, especially for chronic conditions like diabetes, hypertension, and mental health. The memo, signed by NPPA Deputy Director (Enforcement) Manisha Khuntia, has been sent to all drug manufacturers, industry associations, and stakeholders, with a clear message: no more unchecked price hikes. 'Concerned are hereby directed to ensure strict compliance to the provisions of the DPCO, 2013," it stated. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Al-Ahram Weekly
23-07-2025
- Business
- Al-Ahram Weekly
Dabaa Nuclear Plant's 1st unit to start operations in H2 2028: Egypt PM - Energy
Prime Minister Mostafa Madbouly confirmed on Wednesday that the first unit of the Dabaa Nuclear Power Plant will begin operations in the second half of 2028. PM Madbouly made this statement while discussing the project's timeline during his visit to the site. He added that the remaining three units are slated for completion in 2029. According to a cabinet statement, Madbouly stated that over 80 percent of the project's workforce is Egyptian, with tens of thousands working on-site. "It is a great honour that Egyptian personnel are trusted to carry out this ambitious undertaking," he expressed. He explained that the plant consists of four nuclear reactors with a total capacity of 4,800 megawatts (MW), each with a capacity of 1,200 MW, and construction is currently underway across all phases of the project. The premier clarified that the Dabaa project is part of Egypt's commitment to having 42 percent of its electricity generation sourced from renewable and clean energy by 2030. According to a separate cabinet statement on Wednesday, the project will be operated entirely by qualified Egyptian personnel from the very first day of operation. Egypt has recently witnessed a sharp increase in electricity loads, culminating in a record high of 37,600 MW last Thursday — the highest so far this year. In previous summers, the country had faced frequent power shortages, leading to rolling blackouts. In 2023, the government introduced a load-shedding programme to alleviate the strain on Egypt's gas network caused by rising temperatures and increased air conditioning use. National dream The prime minister said the project fulfils a national dream the Egyptian people have had since the mid-20th century. 'It is now a tangible reality that reflects our national will and firm determination to possess advanced, safe, and sustainable sources of electricity generation,' he stated. Madbouly added that the project had remained a mere plan on paper for many years, until President Abdel-Fattah El-Sisi's strong political will and determination made it a reality. In 2015, Egypt's Nuclear Power Plants Authority (NPPA) and Russia's State Atomic Energy Corporation (ROSATOM) launched the Dabaa nuclear project in the northwestern governorate of Matrouh. The project is Egypt's first nuclear power facility in the Mediterranean coastal city of Dabaa, approximately 300 kilometres northwest of Cairo. In April 2025, ROSATOM Director General Alexey Likhachev stated that Egypt's Dabaa NPP will become the world's largest nuclear construction project in terms of geographical scale once it is completed by 2030. Follow us on: Facebook Instagram Whatsapp Short link:
