Mr. Kamlesh Kumar Pant, IAS

Chairman, NPPA

National Pharmaceutical Pricing Authority (NPPA) was established through a Government of India Resolution dated 29th August, 1997 as an independent body of experts for price control of essential and life saving medicines. NPPA implements the National Pharmaceutical Pricing Policy, 2012 and the Drugs (Price Control) Orders issued by the Department of Pharmaceuticals (DoP).

NPPA provides ceiling price to all Drugs notified under Schedule-I and monitors annual price increase for these and the non-scheduled drugs. It has so far given ceiling price to 882 scheduled formulations and Retail Price of around 1640 new drugs. By invoking powers under Para 19 of DPCO, 2013, it has regulated prices of 106 anti-diabetic and cardio vascular drugs, stents and knee implants in public interest.

In February, 2019, NPPA Launched a Pilot for price regulation of 42 anti-cancer drugs as proof of concept for Trade Margin rationalization of non-scheduled drugs. So far savings up to 90% amounting to Rs. 984 cr. per annum have been reported in case of 526 brands.

In view of evolving COVID-2.0 pandemic and to make the medical devices affordable, NPPA has capped the trade margin of Oxygen Concentrators and five other medical devices viz. Pulse Oximeter, Blood pressure monitoring machine, Nebulizer, Digital Thermometer and Glucometer, at 70%, on Price to Distributor (PTD) level, through notifications dated 3rd June, 2021 and 13th July, 2021 respectively.

Indian Pharma is today uniquely placed as the Pharmacy of the World. It is the foremost supplier of generics, vaccines and anti-retroviral drugs for developing countries. The Pharma sector is a buoyant $42 billion industry with a strong export component. It is, thus, important to strengthen Indian Pharma and also to provide level playing field for businesses.

At the same time, out of pocket expenses on medicines remain the single largest cause for families being dragged below the poverty threshold in India. The Government of India has placed Drugs under section 3 of the Essential Commodities Act, 1955 to enable its regulation. The Government is committed to improve access to essential and life saving medicines as it impacts quality of public health as also the economic viability of vulnerable sections of the society.

NPPA strives to strike a balance between the interests of the consumers and the Pharma Industry within the ambit of the DPCOs. For the first time, NPPA is expanding outside Delhi, through the Price Monitoring and Research Units (PMRUs) at State levels, for strengthening, monitoring and public awareness. There is a proactive attempt to synergise with the office of the Drug Controller General of India, State Drug Controllers and NIPERs for integrated data collection, regulation and improved services to the people. NPPA also seeks to undertake concurrent Research and Studies to enable credible contribution to Policy development at the Department of Pharmaceuticals and NITI Aayog.

NPPA administers ‘Pharma Sahi Dam’ and ‘Pharma Jan Samadhan’ platforms for information on medicine prices and registering public grievances. The Integrated Public Database Management System (IPDMS) is being implemented for online information collection from Pharma manufacturers.

NPPA’s role as a Regulator is to work towards a Healthy Nation by making medicines accessible and affordable while creating an enabling environment for the Indian Pharmaceutical Industry to develop into a world leader. NPPA seeks cooperation of all stakeholders in this endeavor.