Following Ranbaxy's refusal to cut prices in anti-diabetic and cardio-vascular segments in compliance with the July 10 NPPA order, Dr Reddy's Laboratories Ltd (DRL) has also refused to cut prices of the 13 specific products covered as per the NPPA notification. Both the companies are supplying drugs at the old prices citing the High Court stay granted to them till the next hearing on February 24, 2015.
DRL and Ranbaxy in their letters to all the stockists have made it amply clear that the stay granted by the High Court continues to be in effect till the next hearing. As per sources, Cipla, Pfizer, Abbott and Sanofi have started supplying drugs capped in the anti-diabetic and cardio-vascular segments as per the July 10 NPPA notification
The copy of the letter of DRL to the stockists which is with Pharmabiz states -"In continuation to our aforesaid letter, we would like to confirm to you that the stay granted by the High Court continues to be in effect till it is cancelled. We will inform you in case if the stay is cancelled. Kindly note that only 13 products are covered under the aforesaid notification for DRL."
Informs Rajiv Singhal, general secretary, Madhya Pradesh Chemists and Druggists Association (MPCDA), the state unit of AIOCD, "We have issued a circular to all 22000 retailers across the 51 districts of the state to return back the old stocks as per the NPPA order and replenish with the new stocks at the revised prices."
Ranbaxy had issued a letter to the stockists with reference to the subject of notification by NPPA dated July 10, 2014. The copy of the letter which is with Pharmabiz states - "We draw kind attention of stockists to our circular dated August 26, 2014 on the above subject and wish to share the update on the matter pending before Bombay High Court. The matter which was initially fixed for hearing on August 28, 2014 got postponed to September 2, 2014. On 2nd September, 2014 also, the matter could not be heard and next hearing is fixed for February 24, 2015.
The Indian Pharmaceutical Alliance (IPA) and the Organisation of Pharmaceutical Producers of India (OPPI), had challenged the order in the Bombay and Delhi high courts, respectively. While the Delhi High Court has refused to entertain the OPPI petition seeking a stay on the DPCO, the Bombay HC is yet to hear the IPA plea.
The Delhi High Court had on August 1 refused to stay NPPA's July 10 order fixing prices of 108 non-scheduled drugs, but sought responses from the pricing authority by September 29, when it will hear the petition.
Significantly, the Delhi HC observed that paragraph 19 of the 2013 DPCO does not restrict price fixation to only essential drugs. Paragraph 19 of DPCO, 2013, authorises the NPPA in extraordinary circumstances, if it considers necessary so to do in public interest, to fix the ceiling price or retail price of any drug for such period as it deems fit, the court had said.