Drug formulations whose prices have been fixed by NPPA include drugs like Metformone Hydrochloride, Paracetamol, Diphenylephrine Hydrochloride, Diphenhydramine Hydrochloride, Caffeine Tablets, Paracetamol, Phenylephrine.
It is known that the maximum price of the drug is fixed by the companies. Those drugs are used to treat cancer, arthritis, heart disease, bacterial infections, pneumonia, tuberculosis, thyroid, epilepsy, and urinary tract infections. There is no doubt about the benefits that patients will get as a result. No doubt, this decision of the government will make the medicines cheaper. Companies that charge more for drugs have to pay the excess to the government.
As a result of the Centre’s decision, Docetaxel formulation is on the list of drugs that will be cheaper. The price of 20 mg of this drug is pegged at Rs 2,558 14 paise. Which used to be about 5000 rupees. But this time the companies have to reduce that price.
The new notification states that the prices of the drug formulations have been fixed. Companies can charge GST only on that fixed price. If companies pay GST, they can collect GST from consumers on fixed prices.
Incidentally, earlier in November last year, the Union Health Ministry had fixed the prices of 384 life-saving medicines. As a result, the companies are no longer able to charge as much as they want for those drugs. In the case of those medicines, it has been informed that all public and private hospitals should keep stock of medicines.
Incidentally, since the start of the Covid-19 pandemic, several measures have been taken by the Center to ensure availability of several essential medicines. Due to which the prices of several medicines have already come under control.