The National Pharmaceutical Pricing Authority has fixed the price of Roscillin 250mg capsules (ampicillin trihydrate IP) produced by Ranbaxy Laboratories Ltd (RLL), finding that the company has increased the price by more than 20 per cent during the period from February 2004 to February 2005. The authority also directed the company to implement the fixed price for the product within 15 days from receipt of the order.

The authority, on the basis of data on price available in ORG IMS, observed that price of Roscillin 250mg capsules formulation pack manufactured by Ranbaxy Laboratories increased by more than 20 per cent during 2004-05 periods. NPPA sought the company to furnish the reasons for such price increase.

"The reply from the company was examined and it was observed that the price increase by more than 20 per cent during the relevant year, for the above formulation pack, was unjustified and against public interest in as much as it puts an unreasonable burden on the consumers without sufficient justification," according to an NPPA notification.

The NPPA fixed the Maximum Retail Price (MRP) inclusive of all taxes of Roscillin 250mg (8 capsules pack) to Rs 36.23, and ordered the company to implement the fixed price within 15 days from receipt of the order by issuing a price list in form V in accordance with the provisions of paragraph 15 of DPCO, 1995. Currently, the market price of the product in the same strength is Rs 38.50, according to market sources.

The manufacturer and marketing company for the above said formulation shall be required to take the requisite prior approval from the competent authority for any change in the composition of the above said formulation with written prior intimation to the NPPA. Any company, which manufactures or markets the formulation, should jointly and severally comply with the order and conditions, added the notification.

The NPPA's move comes as the part of its effort to pin down the increasing cases of overpricing of drug companies, according to the officials.