Pharma Firms Directed to Update MRP by NPPA post Budget 2025 Duty Exemptions

The maximum retail price (MRP) of medications and formulations that are no longer subject to customs duty has been adjusted by the National Pharmaceutical Pricing Authority (NPPA) in accordance with this year's budget. To promote transparency for dealers and regulators, the regulatory authority directed companies to publish a revised pricing list showcasing the changes in an office memorandum from February 17, as per the sources.

As per the memorandum, all manufacturers and marketing firms associated with the drugs listed in the notification must revise the MRP in response to the exemption or reduction of customs duties.

According to the sources, the NPPA also highlighted that producers need to supply the updated pricing information and share a revised or additional price list outlining the changes with dealers, state drug regulators, and government entities.

The Drugs (Price Control) Order, 2013 specifies that the MRP of drugs and formulations encompasses all relevant taxes and tariffs. To ensure that customers benefit from the duty exemptions, the NPPA announced that any reduction or removal of these charges must be reflected in the final pricing.

Finance Minister Nirmala Sitharaman announced in the Union Budget 2025 that 36 essential medications would be entirely free from customs duties. This compilation includes the monoclonal antibody "mepolizumab," indicated for severe asthma, "onasemnogene abeparvovec," utilized for treating spinal muscular atrophy in pediatric patients, and "asciminib," used for managing chronic myeloid leukemia.