What is NLEM 2022
Ans. Means national list of essential medicines, published by ministry of health & family welfare. This includes list of molecules (drugs) which are brought under price control.
What is DPCO
Ans. Drug price control order empowers the National Pharmaceutical Pricing Authority (NPPA) to regulate essential drugs. As per the new DPCO all strengths & dosages specified in NLEM will be under price control.
What is scheduled formulation?
Ans. Means any formulation, included in NLEM list. Formulation is a medicine made out of or containing one or more drugs with or without any excipient for internal or external use.
What is the method of calculation of pricing of scheduled formulation?
Ans. Sum of prices to retailer of all the brands and generic versions of the medicine having market share more than or equal to 1 % of total market turnover on the basic of MAT(Moving Annual Total) /
Total number of such brands and generic version of the medicines. Ceiling price = P (s) X ( 1+M/100)
P(s) = Avg. price to retailer for the same strength and dosage of the medicine (As calculated above)
M = % margin to retailer and its value = 16
How prices of schedule formulation can be revised?
Ans. Government shall revise the selling prices of scheduled formulations as per the annual whole sale price index (WPI) for preceding calendar year on or before 1st April of every year.
WPI – Wholesale price index means annual whole sale price index of all commodities as announced by the department of industrial policy & promotion, Govt of India from time to time.
What is the impact of DPCO on Indian Pharma Industry?
Ans. No. of leading brands with high MRP must reduce their prices significant
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