While the move is set to bring down insulin prices, it has left the industry upset as it expects to lose significant margins due to the cap.
Major players in the segment include Novo Nordisk, Eli Lilly and Sanofi.
Among the domestic companies, Biocon and Wockhardt are likely to be the most impacted by the move.
In a recent order, the NPPA has notified two separate price ceilings for domestic and imported insulin.
The price of domestic insulin is fixed in the range of Rs 135.12 to Rs 144.80 for different pack sizes, whereas the ceiling price for imported insulin ranges between Rs 160.26 and Rs 200.01 depending on the pack.
Earlier, while insulin was under price control, pharmaceutical companies had separate prices fixed by the drug regulator for individual brands.
However, the latest move would ensure there are only two prices for insulin -- one for domestically manufactured and the other for imported insulin.
"Insulin is a product of mass consumption and there are various players in the market.
"Therefore, it is important to have a level playing field as far as pricing is concerned.
If the product is the same, why should one have differential pricing based on brands?" a senior NPPA official said to Business Standard.
The official added the authority might impose such a ceiling on various other essential
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