The Department of Pharmaceuticals (DoP) has asked the National Pharmaceuticals Pricing Authority (NPPA) to review its price fixation orders in the case of two companies—Syncom Healthcare Ltd and Reckitt Benckiser (India) Ltd.
Syncom had challenged the NPPA order, dated September 16, 2005, fixing the prices of certain gel, cream and ointment formulations made from bulk drug erythromycin. The company approached the DoP following the direction by the Delhi High Court on April 5, 2013 in the case.
“Syncom Healthcare had represented to the reviewing authority against the said price fixation order of NPPA and notices for recovery of the overcharged amount issued by NPPA, i.e. dated 14.12.2012 and subsequent Certificate of Recovery dated 03.01.2013 issued by the Collector, Dist. New Delhi to the Collector, Dehradun (Uttarakhand) , under the provisions of DPCO, 1995 read with Section 7A of the Essential Commodities Act, 1955,” said the order by the DoP issued recently.
“The issues involved in the review application have been examined based on the record note of discussions of the personal hearing and other available records and the Government has decided as under: NPPA may be directed to revise the overcharging liability of the Petitioners after allowing the reasonable price to Tritinione 0.025%, 10 gm tube,” it said.
Reckit Benckiser approached the DoP against price fixation Order ( No. S.O.559 (E) dated 14.3.2011) fixing prices of Dettol antiseptic liquid formulations .
“NPPA should consider complete information provided by the Petitioners in Form-III application and arrive at the correct weighted average price of bulk drug terpineol. NPPA has allowed the existing price of castor oil soap solution which is actual input in the formulation. There is no reason for considering the price of castor oil which is a constituent for making castor oil solution. Norms for conversion NPPA treated Dettol as elixir and have allowed the norms for conversion of elixir on the ground that it contained alcohol as one of the ingredients in composition,” according to the DoP order dated August 1, 2013.
“However, after going through the definition, it has been observed that Dettol may be considered Emulsion. Therefore, claim of the company for using norms of conversion for emulsion may be granted. In non-fixing of prices of pack sizes i.e. 60 ml, 110 ml and 210 ml, claim of the company is justified and they should have been provided the cost of pack sizes produced by them. In the absence of notified prices NPPA should consider the existing norms for flat transparent bottle allowed to other companies as per the provisions of their internal guidelines or if no such price exists, NPPA should consider the cost details provided by the company in Form III. NPPA and the Petitioners are directed to take action accordingly,” the order said.