The Hindu : Business : Modest rise in drug prices likely

Online edition of India's National Newspaper
Wednesday, Dec 28, 2005

Business

Business

Modest rise in drug prices likely

Special Correspondent

Revision in norms for packing and conversion costs pushes prices

NEW DELHI: Prices of all formulations are set to rise by 0.55 to 1.2 per cent, following a revision in the norms for packing and conversion costs by the National Pharmaceutical Pricing Authority (NPPA).

It has also marginally raised prices of the crucial anti-TB bulk drug Rifampicin by about 2.3 per cent.

In addition, prices of other bulk drugs such as pheniramine maleate and trimethoprim have been raised by 3.65 and 20 per cent respectively.

The revision in norms for packing and conversion costs will push up prices of all formulations ranging from 0.55 to 1.2 per cent in the case of tablets, capsules, liquids and ointments while ampoule and vial prices may fall by about 0.74 per cent.

According to an official release, prices of medicines based on the bulk drugs rifampicin, pheniramine maleate and trimethoprim will rise by one to five per cent.

In the case of rifampicin based medicines, the increase is expected to be about two per cent, while for medicines based on bulk drugs pheniramine maleate and trimethoprim, the upward revision will be two and five per cent respectively.

At its meeting held here on Tuesday, the NPPA decided to reduce prices of the bulk drugs sodium penicillin G, procaine penicillin G and Benzathine penicillin C by 31.73 per cent, 28.45 per cent 16.77 per cent respectively in comparison to other notified prices.

The authority approved proposals for revising norms for conversion cost, packing charges and process loss and packing material. This would lead to an increase in prices of formulations varying from 0.55 to 1.2 per cent in the case of tablets, capsules, liquids and ointments while in the case of ampoules and vials, there may be price cuts by 0.74 per cent.

The release says NPPA has approved the proposal of revising the packing material norms for adoption in price fixation of formulation cases.

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