Positive sign of progress has been seen in the steps taken by National Pharmaceutical Pricing Authority to execute of the National Pharmaceutical Pricing Policy 2012 which aims that the prices of drugs under National List of Essential Medicines (NLEM) are to be fixed by the Government, primarily based on (a) the prices at stockiest level and (b) the market share of specific formulations with the prime objective that essential medicines should become affordable to all and should reach out to every needy ones in India.
In regards to determine and fix the ceiling price of NLEM medicines, the policy suggests the formula of Simple Average Price of all the brands who are having market share( on the basis of Moving Annual Turnover) more than and equal to 1% of the total market turnover of that medicine.
Hence, in furtherance, NPPA vide notification F. No. 20(3)/2013 Div-I(MIS)/ NPPA dated 10th March, 2013 requested the Associations of Pharmaceuticals Companies as per list to submit relevant information relating to production, Moving Annual Turnover value (MAT value), prices at stockiest level as on 31.05.2012 to be provided as per an prescribed format which is enclosed with the same notification. The Companies were asked to submit the information by 20th March, 2013 positively in order to carry out process of price fixation under NPPP-2012 in time at earliest.