The retail price of a formulation is calculated by the Government using following formula.
Calculation of retail price of
formulation
The retail price of
a formulation is calculated by the Government using following formula.
R.P.
= (M.C + C.C. + P.M. + P.C.) x
(1 + MAPE/100) + E.D.
Where,
R. P. = retail price
M.C.
= Material cost and includes cost of
drugs and other pharmaceutical aids
used including, overages and process loss specified as a norm from time to
time.
C.C= Conversion cost
worked out in accordance with established procedures of costing and fixed as a
norm every year.
P.M. = Cost of
packing material of formulation including, process loss and shall be fixed as a
norm every year.
P.C. = Packing
charges worked out in accordance with established procedures of costing and
fixed as a norm every year.
MAPE = (Maximum
Allowable Post-manufacturing Expenses) - All costs incurred by manufacturer
from ex-factory to retailing stage and includes, margin for manufacturer and
trade margin and it shall not be more than one hundred per cent for
indigenously manufactured Scheduled formulation.
E.D.
= Excise duty to be paid.
In
case of imported formulation the landed cost shall form the basis for fixing
its price along with margin to cover selling and distribution expenses and
importer's profit which shall not exceed fifty per cent of landed cost.
Related Topics
TH 2019 - 2024 pharmacy180.com; Developed by Therithal info.