NPPA Revises Price Of Heparin Upwards By 50% Until Dec 2020

Mumbai, 2 July 2020:

The National Pharmaceutical Pricing Authority (NPPA) has revised the prices of blood thinner drug heparin upwards by 50 per cent until December, 2020 for its consistent availability in view of the increase in API costs from China in COVID-19 scenario.

Price revision is based on Union health ministry committee report which states that there has been a 211 per cent increase in the price of heparin’s API as of today when compared to the base year of September 2018. Upward price revision is also attributed to the fact that heparin is among the essential drugs listed by the union health ministry that need to be manufactured taking into consideration its commercial viability for its consistent availability in the country.

Heparin injection in dosage form and strength of 1000 IU/ml which used to cost Rs 15.31/ml and heparin injection in dosage form and strength of 5000 IU/ml which used to cost Rs 37.99/ml will now cost Rs 24.39 per 1 ml in dosage and strength of 1000 IU/ml and Rs 60.54 in dosage and strength of 5000 IU/ml 1 ml respectively, as per the NPPA order. The national drug pricing regulator invoked its extra ordinary powers in public interest under para 19 of DPCO 2013 for upward revision of the ceiling prices of heparin injection 1000IU/ ml and heparin injection 5000IU/ ml by giving one time increase of 50 per cent from the present ceiling price to be applicable upto 31st December, 2020.

The Union health ministry constituted committee to monitor export and import trends of APIs, formulations and medical devices needed for COVID-19 through its report communicated through a letter dated June 19, 2020 had informed that there has been considerable increase in the price of API heparin when compared to base year of September 2018. Accordingly, the committee recommended short term upward price revision of heparin injection.

NPPA considered the aspect of availability of heparin injection 1000IU/ml and heparin injection 5000IU/ ml, a scheduled formulation, especially during the pandemic situation of COVID-19 and opined that any situation of shortage due to price control needs to be seen from a public interest perspective.

NPPA had received applications from several companies having major market share for upward revision of ceiling prices of heparin injection 1000IU/ ml and heparin injection 5000IU/ ml under para 19 of DPCO 2013 citing reasons that the cost of APIs which constitute major portion of the input cost and mainly imported from China has risen to a considerable extent making the companies entirely unviable to continue manufacture the formulations. The companies also contended that over the years the regulated price have decreased whereas there is consistent increase in the price of imported price of APIs thereby making commercially unviable for the drug manufacturers to manufacture the said product.

Union health ministry has included heparin injection 5000IU/ml as an essential medicine for treatment of COVID-19 patients. Further, reports of shortage were also received for heparin injection.

The Union health ministry committee had opined that NPPA may consider to increase the ceiling price of heparin injection 5000IU/ml by 50 per cent to ensure continuous availability of the essential drugs in public interest. The committee also recommended that increase in ceiling price may be considered for only a fixed duration, say for about six to nine months, after which the situation may be reviewed and further necessary action can be taken as deemed fit. Pharmabiz