India Hikes Drug Prices by 50% to Ensure Availability of Key Medicines

India's drug pricing regulator has raised the maximum price of 11 scheduled formulations by 50% to guarantee their accessibility. The majority of these medications are commonly used as initial treatment options for a range of conditions such as asthma, glaucoma, thalassemia, tuberculosis, and mental health disorders.

During a recent meeting, the NPPA raised prices by utilizing Paragraph 19 of the Drugs Prices Control Order, granting it authority to adjust drug prices when necessary. The decision was made despite some suppliers trying to stop supplies due to financial unviability.

Ceiling prices for various medications like benzylpenicillin, atropine injection, streptomycin powder, salbutamol tablet, respirator solution, pilocarpine drops, cefadroxil tablet, desferrioxamine injection, and lithium tablets have been updated.

"The industry has been demanding a substantial increase in prices as it has been battling rising input costs. The mandate of the NPPA is to ensure availability of essential drugs at affordable prices while ensuring affordability. The essential drugs must remain available to address the public health needs of the country and their price regulation should not lead to a situation where these drugs become unavailable in the market," the minutes of the NPPA meeting said.

In both 2019 and 2021, the NPPA utilized its exceptional authority under Paragraph 19 to increase the prices of 21 and nine formulations by 50%, respectively.