National Pharmaceutical Pricing Authority (NPPA)

National Pharmaceutical Pricing Authority (NPPA)

• NPAA was established by a Government of India Resolution in 1997. It is an office attached to Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers.
• It is headquartered in New Delhi.
• The NPPA currently fixes price of drugs on National List of Essential Medicines (NLEM) under schedule-I of Drug Price Control Orders (DPCO).
• Recently, National Pharmaceutical Pricing Authority (NPPA) has raised the ceiling prices of 21 essential medicines by 50%.

Functions of NPPA

• It is an independent Regulator for pricing of drugs. It ensures accessibility and availability of medicines to people at affordable prices.
• To implement and enforce the provisions of the Drugs (Prices Control) Order in accordance with the powers delegated to it.
• To deal with all legal matters arising out of the decisions of the Authority.
• To monitor the availability of drugs, identify shortages, if any, and to take remedial steps.
• To collect/ maintain data on production, exports and imports, market share of individual companies, profitability of companies etc, for bulk drugs and formulations.
• To undertake and/ or sponsor relevant studies in respect of pricing of drugs/ pharmaceuticals.
• To recruit/ appoint the officers and other staff members of the Authority, as per rules and procedures laid down by the Government.
• To render advice to the Central Government on changes/ revisions in the drug policy.
• To render assistance to the Central Government in the parliamentary matters relating to the drug pricing.

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