The recovery rate from overcharging notices issued by National Pharmaceutical Pricing Authority (NPPA) continues to be dismal with the latest figures showing 14 per cent recovery for the notices issued till June 30, 2006. Of the Rs.719.94 crore demanded by NPPA on 355 cases of overcharging, it has recovered only Rs 99.28 crore. The figures show that while small companies involving less amount of overcharging, attempt to clear the outstandings, pharma majors are often seeking judicial intervention to prevent NPPA from recovering the amount.
NPPA has given recovery notices worth Rs 359.7 crore to Cipla alone. Ranbaxy Laboratories (Rs 92.89 crore) and Dr Reddys (Rs 21.38 crore) are also among the major defaulters. In all three cases, the companies are not required to pay the balance amount due to pending cases.
Of the 355 cases, 287 cases involve only an amount of Rs 37.92 crore and the rest 68 cases, where pharmaceutical companies have approached the courts, deal with an overcharged amount of 682.02 crore. While the recovery rate has been as high as 48 per cent in the case of 287 cases, it remains approximately 12 per cent for the other 68 cases that are in the courts.
The companies who have completely repaid the overcharged amount include Pfizer Ltd, Glaxo (I) Ltd, J & J Ltd, N R Jet Enterprises Ltd, Torrent Pharmaceuticals, E. Merck, Atra Pharmaceuticals Ltd, Glenmark Pharmaceuticals, Medicamen Biotech Ltd, Lyka Lab, Malcom Pharmaceuticals, Beekay Pharmaceuticals, Parth Parenteral Pvt Ltd, Elder Pharmaceuticals, Radicura Pharmaceuticals, Unitech Pharmaceuticals, Sun Pharma, Iven Pharmaceuticals, Laborate Pharmaceuticals, Bell Pharma, Nectar Products India, Radicura Pharmaceuticals, Li Taka Pharmaceuticals, Mexican Pharmaceuticals, K P Pharmaceuticals, Rexford (I), Variety Pharmaceuticals, Rathi Laboratories, Hindustan Pvt Ltd, Bestochem Formulation, Seamless Capsules, Lincoln Pharmaceuticals, Besto Plast, Sanket Pharmaceutical, Universal Pharmaceutical, Peetal Pharma Pvt Ltd, Aipine Laboratories, Bilson Pharma, Parry PharmaGujarat Terce Laboratories, Cambay Health Care, Aryan Pharmaceuticals, Saichem Pharma, Lark Laboratories, Apex Formulations, Medopharm, Warren Pharmaceuticals, Aurobindo Pharma, Kentreck Lab, Shree Pharma, Navil Laboratories, Pakson, Yash Pharma, Punjab Formulations, Borra Foods and Pharmaceuticals, Shalaks Ltd, Sanjivani Parenteral, Axon Drugs, Sanket Pharmaceuticals, Optho Remedies, Crystal Pharma, Mcmillion Pharmaceuticals, Uni-San Pharmaceuticals, Himalaya Meditek Private Ltd, Tsar Pharmaceuticals, Injecto Capta Pvt Ltd, Sumages Pharma Pvt Ltd, Picasso Healthcare, Indo Drugs, Ontop Pharma Ltd, Medo Pharma, Anchor Pharma, Aventis Pharma, Wintac Ltd, Newfin Pharmaceuticals, Burnet Pharma, Sayona Medicare, Waksman Selman, Crystal Pharma, Kostal Pharma, Socrus Pharmaceuticals, Harson Labs, Apar Labs, Bio-Star Pharmaceuticals, Overseas Pharma, Unimark Pharma, Laborate Pharma, M M G Drugs, Kabra Drugs, Polaris Healthcare, Endo Labs, Zenith Healthcare, Akay Pharma, Alar Labs, Intact Drugs, Priyal Healthcare, Wyeth Ltd, Jawa Pharmaceuticals, Deepti Pharmaceuticals, Alpine Pharmaceuticals, Shaimil Labs, Pravin Pharma, Troika Pharmaceuticals, Vikram Laboratories, Beryl Drugs, Carewin Pharmaceuticals, Marck Pharmaceuticals, Jagsonpal Pharma, Jay Formulation, Unimed Technologies, Divine Laboratories, Reliance Formultions Ltd, Dey's Medical Stores, Moxy Laboratories, Parth Parenterals, Eros Pharma, Acto Pharma, Mengle Labs, Agam & Gem Lab, Tabs India, Cadila Pharma, Kamani Pharmaceuticals, Jarson Pharmaceuticals, Nivaram Pharma, Domagk, Unity Pharma, Synthochem Labs and Universal House Drug Pvt Ltd.