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 : 27th March, 2006

Explanatory Note

Subject: Press release on the decisions of the NPPA in its 85th meeting held on 23.03.2006.

The National Pharmaceutical Pricing Authority (NPPA) held its 85th meeting on 23.03.2006 and has decided to fix / revise the prices of bulk drugs and formulations as given below :

Bulk Drugs

The prices of bulk drugs Carbamezapine and its derivative Oxcarbazepine Iodochlorohydroxyquinoline (ICHQ), Cefotaxime Sodium (Sterile), Famotidine, Cefazoline Sodium, Pentazocine, Ephedrine and its derivative Pseudo Ephedrine and Cefadroxyl Monohydrate were fixed in the meeting held on 23.03.2006. In addition revision of prices of bulk drugs and derivatives due to reduction in the peak rate of Customs Duty in the Union Budget of 2006-07 were also effected.

Prices were revised downward in case of bulk drugs Carbamezapine and Cefotaxime Sodium (sterile) from Rs.3080/kg. to Rs.2180/kg. and from Rs.8632/kg. to Rs.7285/kg. resulting in reduction of 29.22% and 15.60% respectively. The revision was done after a cost cum techno economic study. The prices of bulk drugs Famotidine, Cefazoline Sodium (Sterile), Pentazocine, Ephedrine, Pseudo Ephedrine, were revised to Rs. 1358/kg., Rs.7966/kg., Rs.24710/kg., Rs.1062/kg. Rs.1761/kg. from Rs.1673/kg., Rs.9398/kg., Rs.33663/kg., Rs.1314/kg., and Rs.1967/kg. respectively based on available information. The revision will result in decrease in the prices of these bulk drugs by 18.83%, 15.24%, 26.60%, 19.18% and 10.47% respectively. This is likely to result in reduction of prices of respective formulations in the range of 2% to 28%.

Prices of bulk drugs ICHQ and Cephadroxyl Monohydrate were revised upward from Rs.702/kg. and Rs.2303/kg. to Rs.832/kg. and Rs.2474/kg. respectively, resulting in increase of 18.38% and 7.43% respectively. This may lead to increase in the prices of respective formulations by 2% and 7%. The revision of price of ICHQ was done based on cost cum techno economic study while the price Cefadroxyl Monohydrate was revised upwards on account of increase in prices of input costs.

The price of Oxcarbazepine which is a derivative of bulk drug Carbamezapine was fixed for the first time at Rs.3280/kg. based on available information.

The NPPA has also revised the prices of 25 Bulk Drugs and 9 Derivatives as per following details due to reduction in the Customs Duty as announced in the Union Budget for the year 2005-06. This Suo-motu exercise has been carried out in order to pass on the benefit of reduction of duties to the consumers at large. The prices revised alongwith the pre-revised price and the percentage decrease are given below.

The reduction in the prices range from 0.02% to 3.17%

Formulations:

The Authority approved prices in respect of 333 formulation packs. Of these, Ceiling Prices in respect of 113 formulation packs have been fixed under DPCO, 1995 in order to extend the same price for more than one Unit manufacturing the similar formulation. The prices of 220 non-ceiling packs have also been approved by the Authority.

Prices were also approved by the Authority for 234 formulation packs for the first time. The price reduction cases cover formulations based on the bulk drugs Sodium / Procaine / Benzethine Penicillins, Chloroquine, Ibuprofen, Pseudoephderine, Salbutamol, Theophylline, Etophylline, Betamethasone Alcohol / Phosphate / Velerate, Cloxacilline, Insulin etc.