Drug Price Control Order (Dpco) Act
Introduction
The drug price control order (DPCO) is an order published by the government under the “Essential Commodities Act” which enables it to fix the prices of some necessary bulk medicines and their formulations.
This control order was started back in the 1970s for the first time the government placed limits on the profitability of pharmaceutical companies.
The objective of DPCO is to ensure the availability of necessary and lifesaving and preventive medicine of good quality at reasonable prices. It is promoting the wise use of drugs in the country to enhance cost-effective production with economic sizes.
Why did it come into effect?
Some pharmaceuticals started to raise the prices of their products to get maximum ROI and it was affecting the normal user. When it came in the eyes of the Government that the pharmaceutical companies are increasing their prices of most selling products which should be affordable to the customers. So that the government came into action and established an act named Drug Price Control Order or DPCO which says that the necessary drug's price should be in control.
Why is it important?
India is a branded generic market, which suggests that the doctors prescribe the brand of each medicine to be ingested by patients, rather than the underlying formulation. Even with the availability of affordable brands, doctors in many cases prescribe leading brands that are priced at a premium. As patients are unaware about cheaper substitutes, they sometimes switch to the low-cost equivalents of the expensive drug brands recommended by their doctors. Patients have possibility in the choice, making it necessary for the state to intervene and make essential drugs accessible to the needy at reasonable prices.
What are NPPA and its role?
National Pharmaceutical Pricing Authority (NPPA) was founded on 29th August 1997 as an independent body of specialist as per the decision taken by the Cabinet committee in September 1994 while reviewing Drug Policy. The Authority, interalia, has been entrusted with the task of fixation/revision of costs of pharmaceutical products (bulk drugs and formulations), enforcement of provisions of the Drugs (Prices Control) Order, and observing of the prices of controlled and decontrolled medicines in the country.
The benefit of DPCO 2013
The government has advised the DPCO 2013 under the Essential Commodities Act, 1955, which will give the ability to the NPPA to regulate prices of 348 essential drugs along with their specified strengths and dosages under NLEM 2011.The main property of the DPCO 2013
- The new order will bring 348 medicines & their 652 formulations under price control.
- The new policy uses a market-based pricing implement against the earlier proposed cost-plus method. The price of the ceiling will be calculated by taking a simple average price of all drug brands with 1% or more market share.
- Margins of dealers & retailers have been cut down to 8% & 16% respectively.
- Observing the M.R.P of Non-Scheduled formulation.
- Control over Bulk medicine manufacturers.
- Control the above Formulation manufacturer
- Drug producers will be permitted a yearly increase in the retail price in sync with the wholesale price index.
Conclusion
Drug Price Control Order is a leading issued by the Government of India to look after the health of the people and the profits of the manufacturers of Bulk medicines. It has adjusted and covered almost all aspects of the field of pharmaceuticals. National Pharmaceutical Pricing Authority has been performing a very crucial role under this Order. It has been made clear that the Government has to make medicines that are lifesaving, affordable to common people.
Rhombus pharma has a DPCO product. We are also following NPPA, DPCO rules. Our PCD pharma distributors have distributed DPCO products in the market. Rhombus PCD pharma franchises also take care of common people. These are a reason Rhombus Pharma PVT LTD becomes one of the leading PCD pharma franchises company in Gujarat.
