Earlier this year, the National Pharmaceutical Pricing Authority (NPPA) had put out a list naming about 634 drugs in relation to ‘suspected overcharging’. The exact term used was “suspected cases of non-compliance.” The list included some of the leading pharmaceutical companies like Sun Pharma, Cipla, Dr Reddy’s, Alembic, Abbott Healthcare,GlaxoSmithKline among others. A notice was also served for the same.
Now however, the Indian Pharmaceutical Alliance (IPA), a lobby group representing local drug makers, has written to the department of pharmaceuticals criticizing the drug pricing regulator for issuing such demand notices to top drug makers.
It has asked the department to intervene and direct the National Pharmaceuticals Pricing Authority (NPPA) to withdraw the notices. According to IPA, the NPPA’s demand notices on alleged overcharging are based on an “erroneous” and complete “misunderstanding and misinterpretation” of Drug Price Control Order (DPCO).
“NPPA appears to be under the misapprehension that they are entitled to decide at what price and from what date the increase of 10% should be permitted. However the DPCO does not give any such discretionary power to NPPA,” the letter further said.
The firms were suspected of selling drugs at a price higher than the ceiling price fixed for them
. After the expiry of the stipulated period, during which the manufacturer is at liberty to sell the formulations at the maximum retail price prevailing prior to the NPPA’s notification, IPA has alleged that the regulator is “demanding overcharges” beyond the relevant period.
