High API prices push India's NPPA to allow 50% price hike in scheduled drugs

In an exceptional measure, India’s pricing regulator the National Pharmaceutical Pricing Authority (NPPA) has allowed a one-time price hike of 50% for three key drugs - ranitidine (antacid), ibuprofen (analgesic), and carbamazepine (epilepsy).

These are scheduled drugs, under price control in India, and low priced. The NPPA has further allowed an upward revision of the ceiling prices of nine formulations of these three drugs.

Some of the companies that immediately stand to benefit are Torrent Pharmaceuticals, Cadila Pharmaceuticals, Zydus Cadila and J B Chemicals, as they have top-selling ranitidine brands. While Sun Pharmaceuticals, Torrent Pharmaceuticals, Intas, and Abbott have leading carbamazepine brands, Cipla and Abbott have popular ibuprofen brands.

The NPPA allowed the price hike noting that these were essential medicines for public health management, and that high price should not be the reason for their shortage, discontinuation or unavailability. The NPPA is mandated to fix and revise the prices of controlled bulk drugs and formulations.

As an official said, even as the NPPA ensures affordability, access cannot be jeopardized, and life-saving essential drugs should remain available to the general public at all times. The official added that the 'unviability' of these formulations should not lead to a situation where these drugs become unavailable and the public is forced to switch to costly alternatives.

Other API prices leap

Meanwhile, with the price of active pharmaceutical ingredients (APIs) shooting up over the last few months, prices for drugs like paracetamol, azithromycin, doxycycline, and ivermectin have soared.

Prices have risen in one month alone. From March to April 2021, the price of ivermectin shot up 200% to $723.61 a kg in April from $241.22 in March. While the price of methylprednisolone succinate zoomed 124%, the price of meropenam jumped 72%.

Doxycycline has also witnessed 60% rise in price. The price of enoxaparin recorded 47% rise, while the price of azithromycin has increased 30% in one month.