DPCO,DPCO ACT - you must know about

DPCO ACT and DPCO Full Form

The DPCO is an order. It is issued by the government under the “Essential Commodities Act” and it enables to fix the prices of some essential bulk drugs and their formulations.

The full form of DPCO is depicted as the Drug Price Control Order.

This control order was postulated back in the 1970s for the first time the government placed limits on the profitability of pharmaceutical companies.

The main motto of DPCO is to ensure the availability of essential and lifesaving and prophylactic medicine of good quality at reasonable prices. It is promoting the rational use of drugs in the country to enhance cost-effective production with economic sizes.

Why DPCO-1995 came into effect?

Most of the pharma companies started to increase the prices of their products to get maximum ROI and it was affecting the normal user. When it was observed by the Government that the pharmaceutical companies are raising their prices of most selling products which should be affordable to the users. The government came into action and introduced an act named Drug Price Control Order or DPCO-1995 which states that the essential drug’s price should be in control.

Why DPCO Product list, DPCO Price List is important?

DPCO in pharma is the most vital act that regulates the price in the Indian medicine market. India is the biggest branded generic market, which means that the doctors prescribe the brand of each medicine to be consumed by patients, rather than the underlying formulation. Despite the availability of affordable brands, doctors in many cases prescribe leading brands that are costly. As patients are not aware of cheaper substitutes, they sometimes switch to the low-cost equivalents of the expensive drug brands recommended by their doctors. Patients have little option for the choice, making it necessary for the state to interfere and make essential drugs accessible to the needy at reasonable prices.

According to WHO, the economic impact of pharmaceuticals is substantial -- especially in developing countries. Spending on pharmaceuticals is less than one-fifth of total public and private health spending in most developed countries, it represents 15 to 30% of health spending in transitional economies and 25 to 66% in developing countries. In lower-income countries, pharmaceuticals are the largest public expenditure on health after personnel costs and the largest household health expenditure. The expense of serious family illness, including drugs, is a major cause of household disadvantage. Despite the potential health impact of essential drugs and substantial spending on drugs, lack of access to essential drugs, irrational use of drugs, and poor drug quality remain serious global public health problems.

 India is among the countries with the highest Out Of Pocket (OOP) expenses for health care. Expenditure on drugs is over 67% of out of pocket expenditure on health care (NSSO 68th Round 2011-12). High-level Expert Group Report (HLEG) on Universal Health Coverage (UHC) for India suggested that an increase in the public procurement of medicines from around 0.1% to 0.5% of GDP would ensure universal access to essential drugs. Although India is one of the largest manufacturers and suppliers of generic drugs in the world and on the other hand about 65% of the Indian population lacks regular access to essential medicines.

Branded medicines are costly rather than generic medicines even though their effectiveness remains the same, given the standardized procedures for its manufacturing. Annual Report 2014-15 of Department of Pharmaceuticals states that certain branded medicines come in 17 times costlier than the generic versions. In some cases, prices of generic medicine have dropped by almost one-third in certain states through an open tendering, indicating the higher profit margin available to manufacturers in these cases.

Moreover, the doctors used to prescribe medicines by brand names rather than a generic name. In some states, strict instructions were issued that doctors should prescribe by generic names only. But this has not brought relief yet to the patients as the chemist would give him/her a list of brands with the same chemical name and ask him/her to choose. In the process, patients are buying the costliest branded medicine because of the thought that the costlier medicine is the better one.

 DPCO-2013 AND NPPA

DPCO product list can be seen on the official website of NPPA. DPCO price list is fixed by NPPA and you can see here. 

Through a recent order the apex drug price controller, National Pharmaceutical Pricing Authority (NPPA) has fixed the price of 29 DPCO drug formulations. Many of the drugs whose price has been fixed include popular cardio-diabetes products, paracetamol combinations, and many more in the recent order issued by the Government of India. The total rundown of 42 DPCO products that are anticancer drugs under the value control covers most regular tumors. The National Pharmaceutical Pricing Authority conjured unprecedented powers in broad daylight intrigue and brought 42 non-booked anticancer drugs under value control.

According to DPCO-2013, to bring 42 anticancer drugs under Up until this point, 57 anticancer drugs are as of now under the value control as planned details. 42 anticancer medications have now been chosen for Value guidelines by limiting the exchange edge on the selling value (MRP) up to 30%.

These would cover 72 plans and 355 brands, according to information accessible with NPPA.

The makers have been given seven days to recalculate the costs and illuminate the NPPA, State Drug Controllers, stockiest, and retailers. According to information accessible with NPPA, the MRP for 105 brands will be diminished by up to 85%. This would give a sparing of least Rs.105 crore to customers. The NPPA right has now fixed costs of medications put in the National List of Essential Up until now; around 1000 medications have cost.

The NPPA guarantees that the yearly cost increment in. Regard to booked plans isn't more than the Wholesale Price Index. Also, NPPA additionally screens and guarantees that cost increment regarding the non-booked medications aren't over 10% per annum.

The planned details right now under the value top structure 16 to 17 percent of the pharmacy business.

The current intervention is being endeavored as Pilot for 'Confirmation of Concept' for the total rundown of 42 anticancer drugs under the value control. Some of the DPCO drugs are given below. You can view full list of DPCO drugs here.

Azacitidine

Bendamustine Hydrochloride

 Bortezomib

Crizotinib

Cytarabine Dasatinib

Many online pharmacy stores follow the DPCO anticancer medicines and you can buy medicines from them online or do have a visit. If you are talking about India the same DPCO has been strictly followed by the drug stores regardless of online and offline.

 As of 2024, here are the key updates and trends regarding the Drug Price Control Order (DPCO) in India:

1. Price Ceilings Adjustments

Revised Prices: The National Pharmaceutical Pricing Authority (NPPA) has announced several revisions to the ceiling prices of essential medicines. These adjustments aim to keep drug prices in check, reflecting changes in production costs and market conditions.

2. Inclusion in the National List of Essential Medicines (NLEM)

New Additions: Several new medicines have been included in the NLEM 2024, expanding the list of drugs under price control. This inclusion is intended to ensure that essential treatments are affordable and accessible.

3. Regulatory Changes

Streamlining Compliance: The NPPA has introduced measures to improve compliance among pharmaceutical companies. This includes enhanced monitoring and stricter penalties for violations related to price control regulations.

4. Public Health Focus

Affordable Healthcare: The government continues to focus on making essential medicines more affordable as part of broader public health initiatives. This includes periodic reviews of the DPCO to address emerging health needs and ensure equitable access.

5. Transparency Measures

Enhanced Transparency: There have been efforts to increase transparency in how drug prices are calculated and controlled. This includes making more detailed data available to the public and stakeholders.

For the latest and specific updates on the DPCO, it’s best to refer to the official NPPA notifications or the Ministry of Chemicals and Fertilizers' announcements. These sources provide the most accurate and up-to-date information regarding drug price controls and related policies.