F.No. 9(19)/05/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 : 20th June, 2005

Explanatory Note

Subject: Fixation/Revision of prices of bulk drugs Ranitidine Hcl, Nalidixic Acid, Erythromycin & its Derivatives, Naproxen / Naproxen Sodium and Norfloxacin under DPCO, 1995 reg.

The National Pharmaceutical Pricing Authority (NPPA) has fixed / revised the prices of scheduled bulk drugs Ranitidine Hcl, Nalidixic Acid, Erythromycin & its Derivatives Naproxen / Naproxen Sodium and Norfloxacin under the provisions of DPCO, 1995.

The notified price of bulk drug Ranitidine Hcl has been revised downwards from Rs.690/kg. to Rs.625/kg. after conducting a cost price study. This works out to a decrease of 9.42% in comparison to the earlier notified price.

The notified price of bulk drug Nalidixic Acid has been revised upwards from Rs.1562/kg. to Rs.1623/kg. based on a cost price study. This works out to an increase of 3.91% in comparison with earlier notified price. The prices of bulk drugs Erythromycin Estolate (Ex-Fermentation Rs.3502/kg. and Ex-TIOC Rs.2197/kg.) have been revised to a single price of Rs.2063/kg. Similarly, the price of Erythromycin Base (Ex-Fermentation Rs.4803.kg. and Ex-TIOC Rs.2571/kg.) have been revised to a single price of Rs.2092/kg.. The prices of Erythromycin Stearate, Erythromycin Ethyl Succinate and Erythromycin Propionate have been revised from Rs.1861/kg. to Rs.1465/kg. and Rs.3127/kg. to Rs.2892/kg. and Rs.3024/kg. to Rs.2318/kg. respectively. These prices were revised after conducting a cost price study. There is no comparison with the earlier notified prices in respect of Erythromycin Estolate and Erythromycin Base as dual price existed earlier for Ex-Fermentation and Ex-TIOC production, decrease of 21.28%, 7.52% and 23.55% work out in comparison with earlier notified price for bulk drug Erythromycin Stearate, Erythromycin Ethyl Succinate and Erythromycin Propionate respectively.

The notified prices of bulk drugs Naproxen and Naproxen Sodium were revised downward from Rs. 4864/kg. and Rs.5385/kg,. to Rs.1864/kg. and Rs.1916/kg. which works out to decrease of 61.68% and 64.42% respectively in comparison to earlier notified prices. The notified price of bulk drug Norfloxacin was revised downward from Rs.2162/kg. to Rs.860/kg., which works out to a decrease of 60.22% in comparison to earlier notified price. These prices have been revised considering the submissions of the manufacturers and available information with NPPA. These prices were fixed /revised vide notification in the Gazette of India Extraordinary S.O No. 842(E) to 846(E) dated 15th June, 2005. Copies of the notifications issued in this regard are enclosed. The notifications are also available on the NPPA website www.nppaindia.nic.in.

The revised notified price shall become effective within 15 days from the date of notification the Official Gazette. All the manufacturers of the formulations utilizing the drug in their scheduled formulations are advised to follow the provisions of DPCO, 1995 with regard to pricing of the derivative formulations.