The government has asked the drug companies to follow the notified prices for seven bulk drugs and their formulations that have been brought back to price control by a recent Supreme Court judgement. The drug companies could face action on overcharging, if they fail to comply with the notified price. The drugs under debate are ciprofloxacin, norfloxacin, doxycycline, salbutamol, theophylline, cloxacillin and glipizide.
The government has not been enforcing the notified ceiling and non-ceiling prices for these bulk drugs and formulations since the August '01 order of the Mumbai High Court, which removed them from Schedule 1 of the Drugs Price Control Order (DPCO) 1995. On August 1, the SC set aside the Mumbai HC judgement. As per the press note, manufacturers of these drugs are now required to comply with prices notified earlier by the national pharmaceutical pricing authority (NPPA). The notified price of each bulk drug and the packs of formulation containing such drugs have been stated in the note.
"The manufacturers are advised to suitably revise the bulk drug/formulation prices and submit copies of supplementary price lists to NPPA/State Drugs Controllers and Dealers, as required under DPCO. Wherever necessary, manufacturers are also advised to seek price fixation from the government or NPPA for the concerned bulk drugs/formulations by submitting applications in Form I or III of DPCO 1995. It may be stated that in case of violation, the company would be liable to deposit the overcharged amount to the government under Para 13, and also liable for prosecution under Para 24 of DPCO, 1995 issued under Essential Commodities Act, 1955," the note says.
While this directive is regarding pricing of these drugs, it is learnt that the government is in the process of sending notices to drug companies to deposit 50% of the overcharged amount from the time the companies had started violating the notified prices, up to the present.