New Delhi: Come Diwali, the treatment of diabetes, hypertension and pneumonia will cost less in the country with the Drug price regulator National Pharmaceutical Pricing Authority (NPPA) capping the prices of as many as 18 new brands of essential medicines.

According to reports, most of these new brands of medicines are expected to be launched in the market within a fortnight.

Fixing the maximum retail price of these medicines at the average of MRP of all medicines available in that particular therapeutic segment with at least 1% market share, the regulator has brought these medicines under price regulation using paragraph 5 of the Drugs Price Control Order (DPCO), 2013.

Leading pharmaceutical companies like Cipla, Merck, Franco Indian, Alembic Pharma and Unichem etc. will be affected due to the price fixation by the NPPA.

Failing to comply with the prescribed retail price will have consequences for the erring firms.

"The concerned manufacturer/ marketing company shall be liable to deposit the overcharged amount along with the interest thereon under the provisions of the DPCO, 2013", the NPPA said, adding that "if a company was planning to discontinue manufacture or sale of any of these medicines, then it would have to seek permission from the regulator six months in advance."

The NPPA further said, "If any medicine was priced lower than the ceiling fixed by the regulator, then companies selling such drugs should maintain the existing or lower retail price."