Cipla seeks approval to NPPA for price hike of certain respiratory medications

Drug maker Cipla has written to National Pharmaceutical Pricing Authority (NPPA), the drug price regulator to allow price hike of certain respiratory medications citing substantial rise in cost of a critical ingredient called propellant P227.

According to the letter, titled, 'Request for an increase in prices of respiratory formulations due to substantial price hike of propellant P227', the production of these medicines is becoming expensive.

The company said the cost of propellant P227 rose by 300 percent.

Indian government allows 10 percent annual price increase on formulations that are not under Scheduled-1 of DPCO (Drug Price Control Order), for the scheduled formulations the price increase is linked to the wholesale price index (WPI).

Propellant P227 is used to develop a proper vapor pressure which helps medical products reach deep lungs and help cure asthma, Chronic Obstructive Pulmonary Diseases (COPD) and other respiratory diseases.

Cipla spokesperson confirmed the development, and said the products impacted are a "small subset" of the overall basket of Cipla's respiratory products.

The spokesperson added it is usual for companies to bring the situation to the NPPA's notice.

Cipla is the market leader in the respiratory therapeutic segment. The firm enjoys more than two-thirds of market share in the respiratory inhalation segment in India. Seven brands from Cipla's stable featured in the top 10 respiratory brands by value in India.