The National Pharmaceutical Pricing Authority (NPPA) is taking a tougher stand against arbitrary price increases by the pharmaceutical companies. The pricing regulator has said that drug makers will not be allowed to raise prices of existing drugs by changing the composition.
NPPA has said that if the drug companies introduce a new drug by changing composition of existing drug to which is under price regulation, then it will have to follow the price cap existing on a composition similar to the new drug or will have to apply to the regulator for a fresh pricing approval.
In past companies have hiked prices of drugs by merely adding a new ingredient or making similar adjustments in composition. The objective in such cases is clear from the fact that purpose of the new drug remains identical to parent composition. NPPA’s new stand is directed at such arbitrary price hike by the manufacturers.