Govt retreats NPPA's power to cap non-essential drug prices

The government has withdrawn the National Pharmaceutical Pricing Authority's (NPPA) powers that allowed it to fix the prices of medicines not deemed essential, after its decision to impose price caps on more than 100 drugs triggered industry protests.

NPPA had issued a notice in July imposing price caps on 108 non-essential drugs, which are used to treat diseases ranging from diabetes to HIV/AIDS. The move has been challenged by the industry lobby groups in courts.

In a notice late on Monday, the Department of Pharmaceuticals has withdrawn guidelines issued on May 29 that gave the NPPA the powers to fix the prices of drugs that are not on the essential medicines list.

The Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers, directly controls the NPPA.

(Reuters)