F.No. 8(33)/2001-DP/NPPA-Div.-II

National Pharmaceutical Pricing Authority
Ministry of Chemicals & Fertilizers
Government of India

2E/21, Jhandewalan Extn.,
New Delhi-110 055

Dated : 30th March, 2001

Explanatory Note

The National Pharmaceutical Pricing Authority has revised/fixed the prices of 60 formulation packs on March 29, 2001. The prices have been fixed for the first time in the case of one formulation pack.  In the case of 59 packs the prices have been reduced ranging from 0.48% to 96.04%.

The revision in prices was warranted due to changes in bulk drug price.  The price of bulk drug Ibuprofen was revised downward by NPPA from earlier price of Rs.365.00 per kg notified on 17.11.1999 to Rs.346.00 per kg notified on 15.01.2001.  As per para 8 (2) of DPCO, 1995 companies using such bulk drug are required to submit applications for price revision within 30 days from the date of notification.  NPPA waited for the same period but no application was received from the companies for price revision of the formulations.

Of the 60 formulation packs, ceiling prices (exclusive of excise duty and local taxes etc.) have been fixed in respect of 16 packs. The non-ceiling prices (inclusive of excise duty but exclusive of local taxes etc.) have been fixed in respect of the remaining 44 packs.  The prices have been fixed/revised in accordance with the provisions of the Drugs Price Control Order (DPCO), 1995 and as per the established criteria and guidelines. A copy of the statement showing the existing (where available) and revised prices is enclosed herewith.

The formulations for which prices have been revised/fixed are Ibuprofen based formulations used as Anti-Analgesic and Anti-inflammatory medicine and multi-vitamin Injections.

The prices fixed/revised would become effective within 15 days from the date of notification in the official gazette or the receipt of the 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 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.

The manufacturers are also required to work out the pro-rata prices of different pack sizes as the case may be in terms of S.O. No. 83 (E) dated 27.01.98.

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(L. M. KAUSHAL)
Dy. Director