National Pharmaceutical Pricing Authority (NPPA) has in principle agreed with the industry perspective that the 15-day deadline on implementation of drug price revisions notified by the government is too short a time for the purpose. It is known that the authority has conveyed its feelings to the Ministry of Chemicals and Fertilizers for further action.
Informing this to Pharmabiz.com, Arun Kshetrapal, Chairman NPPA said that the companies should be given at least 30 days for revising their prices with respect to the NPPA notification. He however cautioned against giving more time to the industry, as it would increase the scope of misuse. The chairman declined to comment more on the issue as the matter is pending with the court.
Interestingly, the Supreme Court had in a recent hearing on the SLP moved by SmithKline Beecham Pharmaceuticals (SKB) (GlaxoSmithKline India) asked the ministry to submit a detailed affidavit on the issue. Indian Pharmaceutical Alliance (IPA) and Indian Drug Manufacturers Association (IDMA) are co-petitioners in the SLP. The SC is to hear the case again next month.
The SLP was moved by GlaxoSmithKline India appealing against the Karnataka High Court judgment favouring the DPCO provision relating to 15 days deadline to implement drug price revisions notified by the government.
The SC had stayed all prosecution measures against the company by stating no prosecution measures should be initiated against Glaxo until the court takes a decision on the issue.
The Karnataka HC judgment had upheld the contention of National Pharmaceutical Pricing Authority (NPPA) that the prices of scheduled formulations should be revised within 15 days of the notification regardless of the manufacturing date of the product.
The judgment, in relation to W.P. No.38973/98 filed by M/s. Smithkline Beecham Pharmaceuticals India Limited, Bangalore against Union of India and others, said that the provisions of the DPCO, 1995 are clear that prices should be revised with in 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".
Following the court order, the NPPA had directed the drug manufacturers to implement the prices in respect of bulk drugs / formulations fixed / 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.