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On October 14, the National Pharmaceutical Pricing Authority (NPPA) announced a 50% increase in the ceiling prices of eight essential drugs used to treat common diseases.
The decision affects medications for asthma, tuberculosis, bipolar disorder, glaucoma, and more, making it a significant public health issue.
Why Did the Central Government Sanction a 50% Hike?
The government cited "extraordinary circumstances" and "public interest" as reasons for the price hike.
Pharmaceutical manufacturers requested the price hikes due to rising costs of active ingredients, production, and unfavorable exchange rates, which made selling these drugs unviable.
The NPPA emphasized that ensuring the availability of essential drugs is crucial and that price regulation should not lead to shortages.
Similar price hikes were made in 2019 and 2021 under the same regulatory framework, indicating a recurring need for adjustments in extraordinary situations.
The NPPA operates under the Drug Price Control Order (DPCO), which allows the government to revise drug prices in response to public health needs.
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