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NPPA notifies overcharging cases involving 312 drugs, as companies fail to comply with orders

Joseph Alexander, New DelhiThursday, July 10, 2008, 08:00 Hrs  [IST]

With manufacturers failing to furnish details of many of their products under one or other pretexts in prima-facie overcharging cases, the National Pharmaceutical Pricing Authority (NPPA) has for the first time notified the cases involving 312 drugs belonging to market leaders including Ranbaxy, Reddy's and Cadila. "Though we have sent repeated communications seeking details, the companies have refused to submit the information citing different reasons like non-receipt of notices. This is for the first such a comprehensive list is being put out in the public domain seeking information from the public regarding these products,'' sources in the NPPA said. Though the name of some defaulters or violating cases were disclosed in the Parliament as part answers, it is for the first time that the price regulator has gone public, showing determination to follow up the pending cases with added vigour. The provisions of Para 13 of the Drug (Price Control) Order, 1995 (DPCO, 1995) stipulate that the manufacturers may deposit the amount accrued due to charging of prices higher than those fixed or notified by the Govt. under the provisions of DPCO. In cases of companies, which are found to be prima-facie violating the price notifications, NPPA sends a communication to them to furnish details of batch-wise sales of the subject formulations, so that the extent of overcharging can be quantified. In the absence of information, the process is held up. "In respect of some of the companies, in spite of reminders and follow-up by NPPA, no satisfactory reply has been furnished by these companies. The authority, through this public notice, solicits the assistance of the general public in providing necessary information in these cases of overcharging against the companies so that, legitimate dues payable by these companies under the provisions of Para 13 of DPCO, 1995 and the Essential Commodities Act, 1955 are recovered,'' it said. According to the list, Cadila Healthcare leads with nine cases while Ranbaxy Lab's two products are under scanner. The products from Reddy's, Johnson & Smith, Alkem Labs, Surya Pharma, Ozone Pharmaceuticals, Trident Pharma, and Wockhardt are also in the list. As many as 40 cases are from Maharashtra while Andhra Pradesh has 29 and Gujarat has 28 cases. Himachal Pradesh has 27 and Delhi has 14 cases. The NPPA has asked for details on Doxycycline and Norbactin tablets from Ranbaxy. The products from Cadila that violated the overcharging clauses are Cadavin tablets, Zygenta inj 20ml, Zydexa inj 10ml and 20 ml, Gestec inj, Gercip Tz tablets, Nortec Z tablet LB, Painwin tablet and Derihaler, as per the list.

LIST OF PENDING CASES OF OVERCHARING UNDER PARA 13 OF DPCO'1995

 

 
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