Days after it was revealed that the Centre is likely to dismantle the National Pharmaceutical Pricing Authority (NPPA), its chairman said the decision was ‘rushed’ and the agency was not consulted.
“There were two meetings and the NPPA was not a party to them. Both meetings were held at short notice. This has been a rushed decision. For any policy change, there needs to be consultation. I understand the file is currently with the Minister of Chemicals and Fertilizers for approval,” said Mr. Bhupender Singh.
Meanwhile, secretaries of three Ministries — health, chemicals & fertilizers, and commerce — along with Chief Executive Officer of NITI Aayog (National Institution for Transforming India) have been served with a legal notice by a civil society organisation, the All India Drug Action network, which is the petitioner in the Supreme Court case that resulted in lifesaving drugs being placed under price control.
At a meeting on October 19, the four officials decided that the NPPA would be “wound up and deployed in the Department of Pharmaceuticals and the right to regulate prices should be vested with the government”.
The NPPA was established in 1997 to monitor the prices of essential drugs. At present the Drug Price Control Order (2013) regulates ceiling prices of 432 medicines based on “essentiality.”
“NITI Aayog’s CEO does not have the legal capacity to take these decisions. This is an undemocratic way to decide on subjects that are fundamental to the health of the people. Thinking about drug price control from the frame of reference of ease of business is a wrong approach. I don’t think the government can see this decision through. They are on weak footing, legally and morally,” said S. Srinivasan of LOCOST, a non-governmental outfit that advocates affordable medicine.
The legal notice pointed out that the matter is sub judice.
“You are aware that the Supreme Court had directed the Union of India to bring all life saving and essential drugs under price control. You are also aware of the above mentioned proceedings in the Supreme Court where a number of orders have been passed regarding price control,” stated the notice.
The final hearing of the case has been fixed in December.
Besides dismantling the pricing agency, the October 19 meeting also decided that the Indian drug regulator, Central Drug Standard Control Organisation (CDSCO), would now consult the NITI Aayog CEO Amitabh Kant for reissue of licences and approval of new drugs.
Corrections and Clarifications:
>>NPPA stands for National Pharmaceutical Pricing Authority — and not National Pharmaceutical Pricing Agency as mentioned in the above article earlier.
