NPPA Orders Pharma Firms to Revise Prices After 36 Duty Exemptions

The National Pharmaceutical Pricing Authority (NPPA) has mandated that pharmaceutical companies revise the Maximum Retail Price (MRP) of certain medicines following the recent customs duty exemptions announced in the Union Budget 2025. This directive aims to ensure that consumers benefit from lower prices on essential medications.

In a memorandum issued on February 17, the NPPA instructed all drug manufacturers and marketing firms to update their pricing lists to reflect the removal of customs duties on specified life-saving drugs. This includes prominent medications such as onasemnogene abeparvovec, used for treating spinal muscular atrophy, and asciminib, prescribed for chronic myeloid leukemia.

The NPPA emphasized that any reduction in customs duties must be accurately represented in the final pricing, in compliance with the Drugs (Price Control) Order, 2013. Manufacturers are required to circulate revised price lists to dealers and regulatory authorities to maintain transparency.

This move follows Finance Minister Nirmala Sitharaman's announcement of a full customs duty exemption on 36 life-saving drugs during the budget presentation. The government has allocated significant funds for healthcare, reflecting a 9.78% increase from the previous year, aimed at improving the overall healthcare system.

The NPPA's directive highlights the importance of aligning drug prices with government policies to ensure affordability for consumers, particularly in critical health sectors.