SC Approves NPPA on Capping Drug Prices.

The Supreme Court on October 21 approved the Central Government's notifications and drug pricing orders that put a ceiling on maximum retail price of more than 2,000 formulations.

Key Points

The court ratified a clutch of notifications issued by the Government since July 1999 prescribing the norms for conversion cost, packing charges and process loss of raw materials, thereby fixing the maximum retail prices of drugs formulations.

The court observed that the Drug Pricing Authority based its decision of retail prices of formulations based on studies and recommendations by committees specifically set up to examine the issues of drug pricing.

The court also found nothing wrong with re-issuing the notifications without re-determining the norms every year after noting that the drug manufacturers desisted from rendering any assistance to either the committees or any other authority in revisiting the norms for ceiling prices.

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