After the 5th Price Cap, Many Medicines will Become Cheaper


Rohit Khanna    22 December 2022

On Tuesday, the National Pharmaceutical Pricing Authority (NPPA) capped the prices of 127 select drugs for the fifth consecutive time in 2022. In 2022, several medicines, such as paracetamol, saw a decline in their rates, while the prices of drugs like montelukast and metformin increased.


The new list released by the NPPA includes drugs that are used regularly by patients, such as paracetamol, amoxicillin, rabeprazole, and metformin. According to the list, paracetamol (650 mg), which is currently sold for Rs 2.3 per tablet, is now capped at Rs 1.8 per tablet. Similarly, the price of amoxicillin and potassium clavulanate has been brought down from Rs 22.3 to Rs 16.8 per tablet. Moxifloxacin (400 mg) saw a drastic reduction in its cost price, which was brought down from Rs 31.5 per tablet to Rs 22.8. Additionally, for the first time in 2022, the NPPA capped the price of drugs used to treat bacterial infections like pneumonia.


On the other hand, the price of several medicines, like metformin (500 mg), was increased from Rs 1.7 to Rs 1.8 in the new list. Dr. Rajiv Singhal, general secretary of the All India Organization of Chemists and Druggists (AIOCD), said it is a welcome move. However, he pointed out that some of the drugs, such as paracetamol, have already been priced at the lowest levels, which can affect the supply chain in the future. He explained that manufacturers have limited opportunities to reduce drug costs due to the increasing cost of active pharmaceutical ingredients (API).

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