- The National Pharmaceutical Pricing Authority was established in 1997 as an independent body of experts to regulate the pricing of drugs.
- It has been constituted as an attached office of the Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers.
- The Authority has been entrusted with the task of
- Fixation/revision of prices of pharmaceutical products (bulk drugs and formulations),
- Enforcement of provisions of the Drugs (Prices Control) Order (DPCO).
- Monitoring of the prices of controlled and decontrolled drugs in the country.
- The NPPA currently fixes prices of drugs placed in the National List of Essential Medicines (NLEM) under Schedule-I of the DPCO.
- Non-scheduled drugs are allowed an increase of up to 10 per cent in prices every year, which is monitored by the NPPA.
- NPPA can also fix the price for non-scheduled drugs by invoking extraordinary powers in public interest, under the Drugs (Prices Control) Order, 2013.
Why in News?
- Drug price regulator National Pharmaceutical Pricing Authority has fixed the ceiling prices for 12 anti-diabetic generic medicines, including glimepiride tablets, glucose injection and intermediate acting insulin solution.