Drug Price Control Order 1995 (DPCO) Act
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Today we discussing a topic about Drug Price Control Order (DPCO) Act in a very easy way for complete understanding. and we only added most important part of Drug Price Control Order which is very essential for examination or sessional purpose. You can also download complete topic of Drug Price Control Act 1995 in the form of PDF.So Let's Start...
Drugs are legally recognised as essential commodity and all essential commodities should always be available to general public at a reasonable prices .
The Drug Price Control Order 2013 has been promulgated to ensure equitable distribution of essential bulk drugs. and to fix the maximum retail prices of drug formulations in order to curb the exorbitant profiteering in drug manufacturing and distribution.
The DPCO 2013 came in effect from 15th May 2013 and extend to the whole of india.It has replaced the drug price control order 1995.
The Order has the following Schedule :-
Schedule 1 : It contain the National List of Essential Medicine 2011 categories into 27 Section.
Schedule 2 : It contain Various form for approval or revision of prices of schedule Formulations.
Definitions
BRAND means a reputation , term, design, symbol , trademark, or the other feature that identifies one seller drug as distinct from those of another sellers.
Selling Price means a fixed price by the Government For Schedule Formulation in accordance with the provision of this order.
Dealer means a person carry on the business of purchase or sale of drugs , whether as a wholesaler or retailer.
Distributors mean a person engaged in the work of distribution of drugs and include an agent or a stockist for stocking drugs for sale to a dealer.
Sale Price of Schedule Formulation
Margin to Retailer.
A margin of 16% is allowed to retailer while fixing a ceiling price of schedule formulation and retail price of latest drug.
Maximum Retail Price.
MRP of Schedule formulation = Ceiling Price + Local Taxes.
MRP of new Drug = Retail Price + Local Taxes as applicable.
According to Drug Price Control Order 2013, The MRP is calculated As:-
Retail Price of Formulation = M.C + C.C + P.M + P.C { 1+ MAPE ÷ 100} + E.D.
MC = Material Cost
CC = Conversion Cost
PM = Packaging Material Cost
PC = Packaging Charges
MAPE = Maximum Allowable Post Manufacturing Expenses
E.D = Excise Duty.
|NON SCHEDULE FORMULATION ||
Monitoring the prices of non schedule Formulation.
Government shell monitor the MRP of all the drugs include non schedule formulation and ensure that no manufacturer increase the MRP of a drug by more than 10% during preceding 12 months.
Display if prices of Non Schedule Formulation and price list.
Every manufacturer of a non schedule formulation intended purchasable shall display in indelible print mark on the label of container of the formulation. therefore the minimum pack thereof offered retail sale , the MRP of that formulation with the words "Maximum Retail Price" preceding it and words 'inclusive of all taxes ' succeeding it.
|| SCHEDULE AND NON SCHEDULE FORMULATION ||
Sale price of formulation.
No person shall sell any information to any consumer at a price exceeded the price specified in current price list or price indicated on the label of the container or pack thereof which ever is less.
Manufacturer , Distributor or dealer to not refuse sale of drug :
Subject to provision of Drug and Cosmetic Act and the rule made there under a) no manufacturing or distributor shall with hold from sale or refuse to sale to a dealer any drug without good and sufficient reason. and b) no dealer withhold from sale any drug available with him to a customer entender to purchase such drug.
CONCLUSION
1) The Drug Price Control Order Act 2013 has been promulgated to ensure equitable distribution of essential bulk drugs and to fix the maximum retail prices of drug formulations in order to curb the exorbitant profiteering in drug manufacturing and distribution.
2) The Drug Price control Order 2013 came in effect from 15th May 2013 and extend to the whole of india.
3) The Order has the following Schedule :- Schedule 1 : It contain the National List of Essential Medicine 2011 categories into 27 Section. Schedule 2 : It contain Various form for approval or revision of prices of schedule Formulations.
4) Selling Price means a fixed price by the Government For Schedule Formulation in accordance with the provision of this order.
5) Dealer means a person carry on the business of purchase or sale of drugs , whether as a wholesaler or retailer.
6) Distributors mean a person engaged in the work of distribution of drugs and include an agent or a stockist for stocking drugs for sale to a dealer.
7) Sale Price of Schedule Formulation Margin to Retailer A margin of 16% is allowed to retailer while fixing a ceiling price of schedule formulation and retail price of latest drug.
8) Maximum Retail Price MRP of Schedule formulation = Ceiling Price + Local Taxes. MRP of new Drug = Retail Price + Local Taxes as applicable.
9) According to Drug Price Control Order 1995, The MRP is calculated As:- Retail Price of Formulation = M. C + C. C + P. D = Excise Duty.
10) Monitoring the prices of non schedule Formulation Government shell monitor the MRP of all the drugs include non schedule formulation and ensure that no manufacturer increase the MRP of a drug by more than 10% during preceding 12 months.
11) Display if prices of Non Schedule Formulation and price list.
12) Every manufacturer of a non schedule formulation intended purchasable will display in indelible print mark on the label of container of the formulation and therefore the minimum pack thereof offered retail sale , the MRP of that formulation with the words "Maximum Retail Price" preceding it and words 'inclusive of all taxes ' succeeding it.
13) Sale price of formulation: No person will sell any information to any consumer at a price exceeded the price specified in current price list or price indicated on the label of the container or pack thereof which ever is less.
Thanku For Reading.
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