India’s NPPA Announces New Price Caps for Similar Drugs Sold by Same Drugmaker

India’s National Pharmaceutical Pricing Authority (NPPA) has rolled out a new policy capping prices on similar drugs sold by the same pharma company to the price of the least expensive version. The agency made the move based on the Drug Price Control Order, which it used previously to make medical devices like stents and knee implants more affordable to patients.

According to Teena Thacker, “NPPA had earlier received various representations from pharma companies and industry associations against the methodology of restricting PTR plus 10% while fixing the ceiling price of newly included formulations in NLEM 2022 involving inter brand PTR variation of more than 10%of the same company.”

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(Source: The Economic Times, May 12^th, 2023)