Below we have described about the key definitions in DPCO 2013 to understand important terms related to drug pricing regulation and pharmaceutical policies in India.
Key Definitions in DPCO 2013
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Scheduled Drug:
- A drug listed in Schedule I of DPCO, derived from the National List of Essential Medicines (NLEM).
- These drugs are subject to price control.
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Non-Scheduled Drug:
- Drugs that are not listed in Schedule I and are not under price control.
- NPPA monitors their price increases, which cannot exceed 10
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Ceiling Price:
- The maximum price at which a scheduled drug can be sold.
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Formulation:
- A medicine prepared in a specific form (tablet, capsule, syrup) containing one or more active pharmaceutical ingredients (APIs).
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Bulk Drug:
- The active ingredient used in the formulation of medicine, without processing into the final product.
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Retail Price:
- The maximum selling price of a formulation (including taxes) set by the manufacturer but regulated under DPCO.
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National List of Essential Medicines (NLEM):
- A list of essential medicines defined by the government based on public health importance and cost-effectiveness.
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