India Cuts Prices Of 72 Formulations

India's National Pharmaceutical Pricing Authority, as previouslyforecast, has ordered a reduction in the prices of 72 formulations, many of them widely-used medicines, following a downward revision in the prices of 25 bulk drugs which the formulations use (Marketletter October 13). The bulk drug prices were lowered after the 1997-98 (April-March) budget announced a reduction in customs duties and corporation tax last February, a federal government statement noted.

The NPPA is authorized by the Drugs Price Control Order to monitor and revise prices of bulk drugs and formulations. The statement said the reductions range from 15.88% in the case of Lyndiol tablets, 0.17% for Naprosyn (naproxen) gel and 6.04% for Analgin injection (50% concentration). Formulations based on oxytetracycline have had their prices cut 9.09%.

In fixing the new prices, the NPPA has considered only the change in material costs brought about by reductions in customs duties and corporation tax. The other components such as currency conversion packaging material costs, packing charges, loss of raw materials in processing and a mark-up of 100% have been retained at the prevailing levels, according to the government statement.