Pharma Industry Faces Highest Ever Price Hike

New Delhi: The pharma industry is going to see the highest ever annual increase in prices of essential medicines as the cost of such drugs including painkillers, anti-infectives, antibiotics are set to rise by more than 12 percent effective April 1, 2023.

A decision in this regard was taken by the National Pharmaceutical Pricing Authority (NPPA).

"Based on the Wholesale Price Index (WPI) data provided by the Office of the Economic Advisor, Department of Industry and Internal Trade, Ministry of Commerce and Industry, the annual change in the WPI works out as 12.1218% during the calendar year 2022 over the corresponding period in 2021," NPPA notified.

The move will impact the prices of more than 800 drugs on the National List of Essential Medicines (NLEM). On one hand, it brings relief to the pharma industry that has been battling with the increasing input costs due to the pandemic. However, consumers will have to pay more for routine and essential drugs, including:

• Painkillers
• Anti-infection drugs
• Cardiac drugs
• Antibiotics

Also Read: NPPA Revises Ceiling Price Of 80 Scheduled Formulations, Details

Mathrubhumi reports that the manufacturers had informed the government that the rise in cost of raw materials have adversely impacted the industry. Following which, the Centre granted approval for the price hike.

Previous year, the pricing authority allowed a 10.7 percent increase in drug prices. Every year, the NPPA announces a change in the Wholesale Price Index (WPI) in accordance with the Drugs (Price Control) Order, 2013, or DPCO, 2013.

Commenting on the move, Malini Aisola, co-convenor of All India Drugs Action Network (AIDAN) told ET Healthworld the latest “massive” hike will distort price controls and hence the government should intervene.

“This (increase) is the highest seen since the DPCO (Drugs [Price Control] Order) 2013 came into force and this is the second year in a row that the WPI is higher than the annual permitted price hike for non-scheduled formulations (10 percent),” she added.

“Such a drastic hike will distort the price controls in place on essential medicines; the government should intervene in the interest of maintaining the affordability of these drugs. Such high back-to-back price increases are undermining the purpose of price fixation of essential medicines,” she further said.