Price Rise In Domestic Drugs ? ππ
The National Pharmaceutical Pricing Authority (NPPA) has allowed for an increase of 10.7% for various essential medicines including painkillers, anti-infectives, antibiotics, etc.
The National Pharmaceutical Pricing Authority (NPPA) has allowed for an increase of 10.7% for various essential medicines including painkillers, anti-infectives, antibiotics, etc.
Scheduled Drugs are prescription drugs for which the ceiling price is set by the NPPA under the purview of the Department of Pharmaceuticals. Scheduled Drugs constitute about 18% of the total domestic pharma industry.
For Non-Scheduled Drugs, manufacturers are allowed to set the Maximum Retail Price (MRP) and only allowed to increase the price of these drugs by 10% every year.
This will be the first time that the prices of Scheduled Drugs have increased more than the price of Non-Scheduled Drugs. In the past, price increases for Scheduled Drugs have been much lower.
In 2019, NPPA allowed for an increase of 2% whereas an increase of 0.5% was allowed in 2020.
Input price pressure had increased for most companies in FY22 as the prices of APIs and various other inputs increased by 20% to 150% during the year.
Input price pressure had increased for most companies in FY22 as the prices of APIs and various other inputs increased by 20% to 150% during the year.
The price hike will help domestic pharma companies increase margins in FY23.
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