DPCO
DPCO
Introduction
The government has notified the DPCO 2013 under the essential
commodities ACT 1995, which will give power to the NPPA to regulate
prices of 348 essential drugs along with their specified strength and
dosage under NLEM 2011.
The new order will bring 348 drugs and their 652 formulation under
price control.
The new policy uses a market based pricing mechanism against earlier
proposed cost.
The selling price would be calculated by taking the simple average of
prices of all brands of a drug with a market share of 1%.
DPCO 2013
The selling price of a scheduled formulation of specified strength and dosage form as specified
under the schedule shall be calculate under….
First the average price to the retailer of the schedule formulation shall be calculated.
Sum of price to retailer of all the brands and generic version of the medicine having market
share more than or equal to 1%.
There after the selling price of the schedule formulation i.e., P(c) shall be calculate by:-
P(c) = P(s). 1+M/100.
P(s) = Average price to retailer
M = Margin to retailer.
MRP
The MRP of schedule formulation shall be fixed by the manufacturers on the basis
of selling price plus local taxes wherever applicable,
MRP = Selling price + Local Taxes
The MRP of a new drug shall be fixed by manufacturer on the basis of
(Material cost + Conversion cost + Packing material cost + Packing charges) x (1
+ MAPE/100+ E.D)