Prices of 80 drugs cut by up to 38%

NEW DELHI: The government has reduced prices of 80 medicines by as much as 38% while increasing prices of about 24 formulations as part of its periodical price revision process.

Among those popular medicines whose prices were reduced include various brands of Vitamin C & its derivatives and several multi-vitamins. Though the percentages are high, it is unlikely to have a major impact on the revenue of the companies concerned as many of these drugs form a small chunk of their total sales.

Drug price regulator National Pharmaceutical Pricing Authority (NPPA) has also rejected drug makers' demand to increase prices of diabetes drug insulin to ensure availability of the medicine at affordable prices, a government release said.

But the drug pricing authority, which fixes MRP of drugs made using 74 drug ingredients, has allowed companies to increase retail prices of some antibiotics and anti-malarial drugs, among others.

NPPA had revised prices of 154 drug formulations on July 19. The MRP was fixed for 138 drug formulations while prices for 16 specific brands of companies were also capped.

Drugs companies such as Eli Lilly, Cadila and Biocon that sell diabetes drug insulin have sought an increase in retail prices of their brands due to a higher production cost.