Centre to enhance drug pricing order committee structure

Officials familiar with the situation revealed that the Centre intends to restructure the committee that issues Drug Price Control Orders, which allow the government to establish a maximum price for essential and life-saving medicines.

According to the sources, the decision to make changes comes after certain pharma associations expressed their discontent with the existing pricing policies.

The current committee consists of three key members—the Secretary of the Department of Pharmaceuticals, Chairman of the National Pharmaceutical Pricing Authority (NPPA), and the Drug Controller General of India (DCGI).

“There have been concerns raised about the DPCO concerning the pricing mechanism. Pharma companies and associations are not satisfied with it. A meeting is expected to be convened in July where pharma bodies will be invited to provide their input,” shared an official.

Focus is to strengthen and enhance the DPCO before considering any amendments

Accordingly, changes will be implemented. The primary focus currently is to enhance the effectiveness of the DPCO before contemplating any amendments to the decade-old Act,” added the official.

The committee’s main objective is to ensure a balance between drug pricing and availability of essential medicines while providing incentives for industry growth and exports.

“The committee has always been dedicated to maintaining stable drug pricing to benefit consumers. In recent months, there have been pricing revisions, with the committee holding consultations before making such decisions. If there is a need to expand the committee, it will be addressed,” mentioned another official.

The DPCO covers 680 scheduled drug formulations across 27 therapeutic groups and emphasizes the availability of essential medicines at reasonable prices while promoting rational drug use.

An email sent to the secretary and information officer of DoP remained unanswered at the time of publishing.

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