The drug
pricing and issues surrounding it has been in news recently. In this article
two basic concepts in national pharmaceutical pricing policy are explained.
Suo-moto pricing and Pro-rata pricing
Suo moto
Under the
pricing policy, companies are asked to report the price of the bulk
drugs/formulations within prescribed time. If the companies fail to do so, the NPPA can fix the price by itself
(suo-moto). Eg: the price of a component goes down or if the tax decreases
naturally the price of the medicines has to go down. The companies may not be very
interested in lowering price. To improve and correct this lack of interest,
NPPA prescribes suo-moto pricing.
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| photo : www.niper.ac.in |
Pro-rata
Pro-rata
means A method of assigning an amount to a fraction,
according to its share of the whole. Here based on the ceiling price of
formulations, the companies can calculate the price of the products. This
enables them to calculate price of a product without always coming back to
NPPA.
Read more (click here)
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