F.No. 9(5)/06/DP/NPPA

Government of India
Ministry of Chemicals & Fertilizers
Department of Chemicals and Petrochemicals
National Pharmaceutical Pricing Authority

YMCA Cultural Center Building,
1, Jai Singh Road, New Delhi-110001
Phone : 011-23345116/18, Fax : 23445119
Dated : 1st February, 2006

Explanatory Note

Subject: Press release on the decisions of the NPPA in its 84th meeting held on 01.02.2006.

The National Pharmaceutical Pricing Authority (NPPA) held its 84th meeting on 01.02.2006 and has decided to fix / revise the prices of scheduled bulk drugs and formulations under DPCO, 1995 as per details given below :

Bulk Drugs

The price of bulk drug Metronidazole and its derivative Metronidazole Benzoate has been revised from Rs.470/kg. to Rs.471/kg. and Rs.373/kg. to Rs.401/kg. respectively after conducting a cost price study. This works out to an increase of 0.21% and 7.57% respectively in comparison to the earlier notified price. This drug is used in the treatment of Amoebic infection and delivered in the dosage form of oral solids, liquids and Injectables. This increase in price would result in around 1% increase in formulation price of Metronidazole Benzoate & negligible/nil increase in respect of Metronidazole.

The Authority after considering the submissions of manufacturers and available information with NPPA has decided that the existing notified price of bulk drug Chlorpropamide be continued. This drug is used in the treatment of Diabetes.

Formulations

The Authority in its meeting no. 84 held on 01.02.06 considered 384 cases relating to fixation / revision of prices of formulation packs of which the prices were reduced in respect of 112 cases. Upward revision in the prices has taken place in 13 cases based on pricing applications received from different units. In other cases the Authority after considering the available information decided that the existing notified prices be continued. For the first time, the prices have been fixed in respect of 11 formulation packs besides five imported insulin formulations. The Authority while approving the prices in respect of all formulation cases has also taken into account the new norms of Conversion Cost, Packing Charges, Packing Material Cost and Process Loss recently notified vide S.O. No. 1831(E) & 1832 (E) both dated 29.12.2005.

The reduction in the prices has been taken place in respect of derivative formulations of the bulk drugs namely, Ibuprofen (Pain Killer), Chloroquine (Anti-Malarial), Cloxacillin (Antibiotic), Theophylline & Salbutamol (Respiratory Drugs), Betamethasone (Corticosteroids), Sulphamethaxole (Anti-bacterial), Pyrantal Palmoate (Worm Infection), Vitamin formulations, Erythromycin Estolate (Antibiotic), Spironolactone (Diuretics), Prednisolone (Corticosteroids) and Insulin formulations etc.

The Gazette notifications / Price Fixation Orders to implement the above decisions of the Authority are being issued separately. The prices fixed / revised would become effective within 15 days from the date of notification in the official gazette or receipt of the Non-ceiling, price (NCP) Order of the NPPA in this behalf, as per Para 14(1) of DPCO, 1995. Necessary revised price list is to be issued by the manufacturers / importers as required under sub-paragraph (3) of paragraph 14 of the DPCO, 1995. Accordingly, as per the provision, the revised price list in Form-V of the DPCO is to be furnished by the concerned manufacturer(s) to the Government and NPPA, State Drug Control Authorities and distributors, wholesalers and retailers or any other agent.