The NPPA has directed the drug manufacturers to implement the prices in respect of bulk drugs and formulations fixed or notified by NPPA within 15 days of the notification and ensure that the stocks are sold after the stipulated period only at the prices fixed by the NPPA.
The NPPA directive is subsequent to the recent Karnataka High Court order on the NPPA provision that the prices of scheduled formulations should be revised within 15 days of the notification regardless of the manufacturing date of the product.
Karnataka HC passed the order on a petition filed by SmithKline Beecham Pharmaceuticals India Limited, Bangalore against Union of India and others. The HC has ordered that the provisions of the DPCO, 1995 are clear that prices should be revised within 15 days even in regard to the formulations which were manufactured prior to the date of notification or those manufactured within 15 days from the date of notification.
The HC observed that " a combined reading of these provisions make it clear that every manufacturer and distributor is duty bound to issue a revised price list within 15 days from the date of the notification issued by the Government under Para 9 of DPCO. It is also clear that manufacturers, distributors and retailers will be liable to sell formulations from the date of such revised price list (which is required to be published within 15 days from the date of notification) at the revised prices and not the prices mentioned on the label of the container or pack. In view of it, the contention of the petitioner that revised prices will not apply to the existing stocks but only to new batches of drugs and formulations to be manufactured after 15 days of the notification cannot be accepted. The provisions of the DPCO are clear that prices should be revised within 15 days even in regard to the formulations which were manufactured prior to the date of notification or those manufactured within 15 days from the date of notification".