Serum Institute Wins Pricing Battle: India Approves 20% Hike On BCG, Measles Vaccines

Published 12 June 2026 · india

Serum Institute Wins Pricing Battle: India Approves 20% Hike On BCG, Measles Vaccines Reported By, Last Updated: June 12, 2026, 16:48 IST The latest decision

Serum Institute Wins Pricing Battle: India Approves 20% Hike On BCG, Measles Vaccines Reported By, Last Updated: June 12, 2026, 16:48 IST The latest decision grants the vaccine maker's argument that biological products warrant exemption from average-price-reduction rules applied to other pharmaceutical categories Rapid Read News18 India’s drug pricing regulator, Pharmaceuticals Pricing Authority (NPPA), has approved a price increase for three essential vaccines — BCG, measles, and measles rubella — after reviewing requests from the vaccine maker, Serum Institute of India (SII), News18 learnt. SII, which holds a monopoly on their supply, successfully challenged the government’s standard pricing controls. The NPPA decided on June 11 to permit ceiling price revisions of approximately 20 percent across the three formulations without applying monopoly pricing restrictions, marking a reversal of precedent that typically prevents steep increases when a single manufacturer dominates the market. According to the minutes of the meeting held on June 11, seen by News18, “the authority noted that Serum Institute of India Private Limited filed a review application for the three formulations ‘BCG vaccine, Measles vaccines and Measles Rubella vaccine’ contending that applying the monopoly price reduction based on the average price reduction of products within the same sub-therapeutic category is inappropriate for biologicals and vaccines, as each vaccine is a distinct product…." The latest decision grants the vaccine maker’s argument that biological products warrant exemption from average-price-reduction rules applied to other pharmaceutical categories and calls the price increase request a “genuine grievance".

The NPPA’s 147th meeting on June 11 was chaired by P. Krishnamurthy, chairman of the authority. SERUM INSTITUTE CHALLENGED PRICING RULES The Serum Institute of India filed a review application in December 2024 arguing that standard pricing methodology was inappropriate for vaccines. The company’s challenge centred on the argument that these vaccines cannot be treated as interchangeable commodities subject to blanket price-reduction formulas. The regulatory authority deliberated the matter and sided with Serum Institute’s interpretation. The minutes noted that “the applicant has emphasised that BCG, Measles and Measles-Rubella vaccines are distinct biological products of significant public health importance, each involving unique manufacturing processes, technologies, disease indications and market dynamics". It further said, “It has been contended that these vaccines are critical and maintaining their commercial viability is essential to ensure uninterrupted supply, particularly in view of the limited number of manufacturers, high compliance costs and the strategic importance of domestic vaccine production." The minutes said that the “authority had decided that the ceiling price of BCG vaccine may be fixed/revised under Para 19 without applying reduction under monopolistic conditions to address the genuine grievance of the applicant as well as to ensure sufficient availability of the drug in the market".