NPAA may not stop pricing control with stents
Published: Feb 22, 2017
By TIOLCORP News Service
NEW DELHI, FEB 22, 2017: THE National Pharmaceutical Pricing Authority (NPPA) has clearly stated that if it finds 'similar exploitative system' of pricing like what was observed in the stent trade channel, it will not 'shy away' from bringing those devices under price control using special powers, which have been provided under section 19 of Drug (Prices Control) Order, 2013, or DPCO, 2013.
Meanwhile, invoking special powers under section 3(1) of DPCO, 2013, the Department of Pharmaceuticals (DoP) on Tuesday asked the stent manufacturing companies to submit a weekly report on stents, which have been produced and distributed till date, and maintain their current supply in the market. The NPPA works under the DoP.
"They will also submit a weekly production plan for the next week to NPPA and Drug Controller General of India (DCGI)," said the DOP on Tuesday. Section 3(1) of the DPCO, 2013 states that Centre can "direct formulators to sell the formulations to institutions, hospitals or any agency" with a view to achieve adequate availability "in case of emergency or in circumstances of urgency".
Centre has invoked these powers as it has been receiving reports regarding shortage of stents in hospitals and market. NPPA is currently monitoring the prices of devices which have seen sudden hike of more than 10 per cent recently. "The authority decided to take up on priority, monitoring of prices of devices, (which are not under price control), but reporting more than 10 per cent increase in prices, and to take strict action against erring industries," said NPPA.
Para 19 of the DPCO, 2013 states that under "extraordinary circumstances", the NPPA can fix the ceiling price for any drug in public interest.
