Section 4(1) in Drugs (Prices Control) Order, 2013
(1)The ceiling price of a scheduled formulation of specified strengths and dosages as specified under the first schedule shall be calculated as under:Step1. First the Average Price to Retailer of the scheduled formulation i.e. P(s) shall be calculated as below:Average Price to Retailer, P(s) = (Sum of prices to retailer of all the brands and generic versions of the medicine having market share more than or equal to one percent of the total market turnover on the basis of moving annual turnover of that medicine) / (Total number of such brands and generic versions of the medicine having market share more than or equal to one percent of total market turnover on the basis of moving annual turnover for that medicine.)Step2. Thereafter, the ceiling price of the scheduled formulation i.e.P(c) shall be calculated as below:P(c) = P(s).(1+M/100), whereP(s) = Average Price to Retailer for the same strength and dosage of the medicine as calculated in step1 above.M = % Margin to retailer and its value =16
