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Union of India - Section

Section 5 in Drugs (Prices Control) Order, 2013

5. Calculation of retail price of a new drug for existing manufacturers of scheduled formulations.

(1)The retail price of the new drug available in domestic market shall be calculated as provided in sub-paragraph (1) of paragraph 4.
(2)
(i)the price to retailer of a new drug, not available in domestic market, shall be fixed by the Government on the principles of "Pharmacoeconomics" of the new drug, on the recommendation of a Standing Committee of Experts formed under paragraph 15.
(ii)the retail price of such new drug shall be fixed by adding sixteen percent margin to retailer on the price to retailer as fixed in item (i):