National List of Essential Medicines (NLEM) is a list of medicines Under the provisions of DPCO , prices of the drugs in NLEM. Drug Price Control Order & case study of costing two pharmaceutical formulation. DPCO The government has notified the DPCO under NLEM (National List of Essential Medicines) Formulations with. in ceiling prices of drugs under NLEM under Para 19 of the DPCO bring more medical devices under the National List of Essential Medicines ( NLEM).

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Drug Price Control Orders (DPCO)

No Drhgs formatting and links to other web sites are allowed. The monthly market turnover reports of IMS Health a US based company that provides information, services and technology for the healthcare 2031 and the information furnished by individual manufacturers are utilized for the purpose of monitoring prices of non-scheduled formulations.

Privacy policy About Arthapedia Disclaimers Website developed by csipl. The MRP to raw material ratio is about per cent in quite a few essential medicines.

The prices of generic medicines are much cheaper than their branded equivalent. NLEM consists of items like insulin, ibuprofen, sulphamethoxazole, rifampicin, streptomycin, Ranitidine, etc which are bulk drugs and at the same time medicines or formulations as well when these are manufactured as single ingredient formulations. Witnessing such outrageous response from the industry, the Government realized that the implementation of such internal dpxo formulated by the Lsit in pursuance of the powers conferred to it under Paragraph 19 of DPCO, is extremely harsh pressure on the Pharmaceutical Industry and its players as it adversely disturbed and get in the way of the smooth operation of the industry.

The draft policy gives the impression of a policy cobbled to satisfy perfunctorily the Supreme Court Orders of March and Octoberone that will leave major players mostly unaffected. Most medicine prices have not really increased 43 per cent during the period. The Drug Policy ofas implemented through the Drugs Prices Control Order,was introduced in the context of the liberalization of economy and the abolishment of industrial licensing, as well as allowing of foreign investment in the country, including in the drug industry.

Meropenem 1gm is supplied to Nursing homes or even a govt institution rate between Rs. In most low income countries pharmaceuticals are the largest public expenditure on health after personnel costs and the largest household health expenditure.


We see what are the various causes for the adverse effects of the drug and how to rectify with the known knowledge. The government should have kept the option of price control on bulk medicines in the event of cartelisation or abnormal increases in price of bulk medicines. However, this withdrawal does not take away the powers of the Government as mentioned in Para 19 of DPCO to fix the prices of non-scheduled formulations.

This is a paradox given that India is one of the largest manufacturers and suppliers of generic drugs to the world [10]. We have analysed the impact of the notifications and found that the retail market of Rs. It also legitimises the mistaken notion that higher priced medicines are of better quality. In some cases, prices have dropped by almost one-third in certain states when publicly procured through an open tendering, indicating the super normal profit margin available to manufacturers in these cases.

But is it so? Certain exceptions such as for small scale units, drugs produced through indigenous research and development, etc were envisaged for exemption under the Policy.

The kit should very economical to maintain as needed every time at home. The draft policy gives a formula to discourage non-standard dosages.

The NLEM contains the generic name or salts or chemical names. Never mind if the patient may get poorer in the process. Moreover, doctors hardly prescribe medicines by generic names, but by brand.

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But the dose of the same drug may cause adverse effect in the other. Here new drug refers ljst a formulation launched by an existing manufacturer of a drug of specified dosages and strengths as listed in the NLEM by combining the drug with another drug either listed or not listed unnder the NLEM or a formulation launched by changing the strength or dosages or both of the same drug of specified dosages and strengths as listed in the NLEM.

This product comes under drug price control as per the government notification. In this proposal life essential and life saving drugs prices forced to reduced as minimum as possible. Should much-needed iron plus folic acid tablets, which cost less than 10 paise per tablet to produce, be given leeway to sell at or near Rs 3? This is an action that truly interprets the spirit of the Drug Prices Control Order, and its underlying legislation the Essential Commodities Act, The WAP formula has, in effect, no relation with the cost of raw material, let alone the cost of other inputs.



Annual Report of Department of Pharmaceuticals points out xpco instances of such price differentials where certain branded medicines comes at 17 times costlier than the generic versions.

Policy governing drug price control The National Pharmaceutical Pricing Policy which governs the norms for drug price control was notified on We drigs know that one of the solutions for making medicines affordable to people is to make available only essential generic drugs at lower prices, that is if rrugs doctor prescribes them in the first instance.

The ceiling price of a scheduled formulation of specified strengths and dosages as specified under the first liat is calculated as under:. Recently on 22 Septemberas per directions received from the Government in the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers vide letter no.

The term “Drug” Includes – i all medicines for internal or external use of human beings or animals and all substances intended to be used for, or in the diagnosis treatment, mitigation, or prevention of any disease or disorder in human beings or animals, including preparations applied on human body for the purpose of repelling insects like mosquitoes; ii such substances, intended to affect the structure or any function of the human or animal body or intended to be used for the destruction of vermin or insects which cause disease in human beings or animals, as may be specified from time to undre by the Government by notification in the drgs Gazette; and iii bulk drugs and formulations.

Generic medicines are unbranded medicines which are equally safe and having the same efficacy as that of branded medicines in terms of their therapeutic value.

The draft policy identifies the following key objectives: The basis of drugs to be considered was the NLEM,being the latest list at that time. The Pronab Sen Committee submitted its recommendations in September,