Price Cut Prescription: NPPA Directs Pharma Companies to Lower Drug Costs
The National Pharmaceutical Pricing Authority (NPPA) has mandated pharmaceutical and medical device companies to adjust prices in response to reduced GST rates, effective September 22, 2025. Companies are instructed to update price lists and inform stakeholders, while industry associations are encouraged to advertise the changes to ensure compliance.
- Country:
- India
The National Pharmaceutical Pricing Authority (NPPA) has mandated a significant price adjustment in the pharmaceutical sector, urging companies to reflect reduced GST rates in their maximum retail prices by September 22, 2025. This directive impacts both drug and medical device manufacturers.
NPPA's order requires manufacturers and marketing companies to circulate updated price lists to ensure transparent communication with dealers, retailers, state drug controllers, and the government. The authority stresses the importance of widespread dissemination of this information via electronic, print, and social media channels.
Industry bodies are also encouraged to place ads in major national newspapers to facilitate transition to the revised rates. Recalling or re-labelling stock is not required, provided companies manage retailer-level compliance with revised pricing. This move follows the 56th GST Council's decision to cut rates on essential medications.
(With inputs from agencies.)
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