Date: 2014-09-09Category: Extra OrdinaryState: Union GovernmentCountry: India
The National Pharmaceutical Pricing Authority after being satisfied that it is necessary in the public interest so to do, hereby direct that all the concerned manufacturers importers shall comply with the requirements contained in para 21(1) and provide the month-wise production and sale figures for the last 12 months under para 29 of the said Order immediately to the NPPA.
Executive Summary:
The National Pharmaceutical Pricing Authority (NPPA) issues an order addressing the availability and pricing of essential drugs. It directs manufacturers and importers to comply with reporting requirements under the Drugs Price Control Order (DPCO) 2013, specifically regarding production and sales data. A compliance report addressing shortages of specific essential medicines is required within 96 hours of the order's issuance (September 9, 2014). Failure to comply may result in penal action under the Essential Commodities Act, 1955.
Key Points / Main Content:
* **Context and Authority:**
* The order is issued by the NPPA, acting on powers delegated by the Ministry of Chemicals and Fertilizers, under the Essential Commodities Act, 1955, and the DPCO 2013.
* It references the Supreme Court's directive to ensure essential and life-saving drugs remain under price control.
* **Reporting Requirements:**
* Manufacturers and importers must comply with para 211 of DPCO 2013, regarding the monitoring of production and availability of scheduled formulations and active pharmaceutical ingredients.
* Manufacturers must provide monthly production and sales figures for the last 12 months under para 29 of DPCO 2013.
* Manufacturers must maintain records of active pharmaceutical ingredients and drug sales, available for inspection by the government.
* Manufacturers must submit information in Form III of Schedule II of the DPCO 2013 quarterly.
* **Shortage of Essential Medicines:**
* The order addresses reported shortages of Anti-Snake Venom, Rabies vaccine, Rabies Immunoglobulin, Albumin Injection, and Sulfadoxine Pyrimethamine Tablets.
* Manufacturers and importers of these drugs must submit a compliance report within 96 hours, detailing how they will resolve the shortages.
* **Consequences of Non-Compliance:**
* Failure to comply with the order may result in penal action under the Essential Commodities Act, 1955.
* Manufacturers and marketing companies are jointly and severally responsible for complying with the order.
Impact Analysis:
* **Manufacturers/Importers of Pharmaceuticals:**
* Impact: Required to provide detailed production and sales data, address drug shortages, and maintain records for inspection. Subject to potential penalties for non-compliance.
* Action Required: Immediately comply with para 211, provide month-wise production and sale figures for the last 12 months under para 29 to the NPPA, submit a compliance report within 96 hours addressing shortages of specified essential medicines, and maintain accurate records.
* **Patients/Consumers:**
* Impact: Aims to ensure the availability of essential medicines at affordable prices.
* Action Required: None
* **Government (NPPA/Ministry of Chemicals and Fertilizers):**
* Impact: Responsible for enforcing the order and ensuring compliance.
* Action Required: Monitor compliance, inspect records, and take action against non-compliant manufacturers/importers.
Key Entities Referenced
National Pharmaceutical Pricing Authority (NPPA): A government regulatory agency in India established to fix prices and availability of pharmaceutical drugs.
Drugs Price Control Order (DPCO): An order to ensure essential drugs are available to all at affordable prices
Ministry of Chemicals and Fertilizers: A ministry of the Government of India responsible for the formulation and implementation of policies related to the chemical and fertilizer industries.
Essential Commodities Act, 1955: An act of the Parliament of India that seeks to control the production, supply, and distribution of essential commodities.
AntiSnake Venom: An essential medicine reported to have scarcity.
Albumin Injection: An essential medicine reported to have scarcity.
Sulfadoxine Pyrimethamine Tablets: An antimalarial combination medicine reported to have scarcity.
New Delhi: Capital of India
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MINISTRY OF CHEMICALS AND FERTILIZERS
(Department of Pharmaceuticals)
(NATIONAL PHARMACEUTICALS PRICING AUTHORITY)
ORDER
New Delhi, the 9th September, 2014
S.O. 2292(E).—Whereas the National Pharmaceutical Pricing Authority (NPPA) was established
vide the Resolution of the Government of India in the Ministry of Chemicals and Fertilizers No. 33/7/97-PI.I
dated 29th August, 1997 inter alia, to fix prices and notify revisions, if any, of drugs, monitor the prices and
availability of scheduled and non-scheduled drugs and oversee the implementation of the provisions of the
Drugs (Price Control) Order (DPCO); and
2. Whereas the aim of the DPCO is to ensure that essential drugs are available to all at affordable
prices, and the Hon’ble Supreme Court of India vide their Order dated 12.11.2002 in SLP no. 3668/2003 (Union
of India vs K.S. Gopinath & others) have directed the Government to ensure that essential and life saving drugs
do not fall out of the price control, which has the force of law; and
3. And whereas the Ministry of Chemicals and Fertilizers vide S.O.1394(E), dated the 30th May, 2013,
in exercise of the powered conferred by Section 3 and 5 of Essential Commodities Act, 1955 has delegated the
powers in respect of specified paras of the DPCO, 2013, including para 21(1) and para 29 of the said order to
be exercised by the NPPA on behalf of the Central Government.
4. And whereas para 21(1) of DPCO inter alia authorises that the Government, shall monitor the
production and availability of scheduled formulations and the active pharmaceutical ingredients contained in the
scheduled formulation and the manufacturer of scheduled formulations and the active pharmaceutical ingredients¹Hkkx IIµ[k.M 3(ii)º Hkkjr dk jkti=k % vlk/kj.k 3
contained in the scheduled formulation shall furnish the information as stated in Form-III of schedule-II of this
Order quarterly.
5. And whereas para 29 of DPCO provides that every manufacturer shall maintain records relating to
the sales of individual active pharmaceutical ingredients or bulk drugs manufactured or imported and marketed
by him, as the case may be, and the sales of formulations units and packs and also such other records as may
be directed from time to time by the Government and the Government shall have the power to call for any
record and to inspect such records at the premises of the manufacturer.
6. And whereas the NPPA, which has been delegated with the powers of the Government in this
regard, is of the considered view that every manufacturer shall maintain the production level and adequate
supply of the medicines and also ensure submission of the information in Form-III of the Schedule–II of the
DPCO, 2013 quarterly. Further the manufacturer shall keep the records ready for producing before the
Government and / or inspection thereof.
7. And whereas the scarcity of certain essential medicines, namely, Anti-Snake Venom, Rabies
vaccine, Rabies Immunoglobulin, Albumin Injection and Anti-malarial combination of Sulfadoxine + Pyrimethamine
Tablets has been reported to the NPPA and in absence of regular reporting under DPCO, 2013 by the
manufacturers it appears that the concerned manufacturers are not maintaining normal supplies of these medicines
in domestic market and/or Institutions. Hence, the availability of such vital and essential drugs has been affected
many parts of the country.
8. Now, therefore, in exercise of the powers delegated under para 21(1) and para 29 of the Drugs
(Prices Control) Order, 2013 vide S.O. No. 1394(E) dated 30th May, 2013 issued by the Government of India
in the Ministry of Chemicals and Fertilizers, in exercise of powers conferred by section 3 and 5 of the Essential
Commodities Act, 1955, the National Pharmaceutical Pricing Authority after being satisfied that it is necessary
in the public interest so to do, hereby direct that all the concerned manufacturers / importers shall comply with
the requirements contained in para 21(1) and provide the month-wise production and sale figures for the last 12
months under para 29 of the said Order immediately to the NPPA. All the manufacturers / importers of the
essential medicines specified in para 7 above shall also submit a compliance report of resolving the shortage of
these drugs in the country immediately but not later than 96 hours from the date of issuance of this notification
to NPPA.
9. In case of failure / non-compliance of para 8 above, the manufacturer/marketer/importer shall be
liable for penal action under the relevant provisions of Essential Commodities Act, 1955.
10 The manufacturer/importer/marketing company for the above said formulation(s) shall be jointly
and severally responsible to comply with this order and conditions mentioned hereinabove.
[PN/150/18/2014/F./F. No. 15(3)/2014/Div-III/NPPA]
INJETI SRINIVAS, Chairman
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.