The National Pharmaceutical Pricing Authority (NPPA) has sent notices to a total of 460 companies so far for overcharging and sought to recover Rs 1438.45 crore. However, as per the latest available records with the pricing authority, a whopping Rs 1337.95 crore is yet to be recovered.

As many as 75 cases involving Rs 1252.71 crore are under litigation, while notices are pending against 385 companies with Rs 85.24 crore at stake as per the details collected till October, NPPA sources said.

With a view to accelerate the process of recovery, a new wing of enforcement was created in the NPPA and the cases were being pursued in right earnest. Regular ORG-IMS studies are providing required data on the overcharging by the companies, the sources said.

In the month of August, out of the 53,792 medicines marketed having MAT value of Rs 29522.98 crore, prices of 69 packs found above the permissible limit of increase. That is just 0.13 per cent of the total packs marketed. Prices of 47 medicines declined while the prices of 99.78 per cent of packs remained the same.

NPPA conducted a joint study with the Drug Controller, Delhi in September on the trade margin offered by the manufacturers to the retailers in respect of formulations of three non-scheduled bulk drugs - cetrizine, nimesulide and omeprazole - in the Delhi market. It was found that some manufacturers of the so-called generics medicines had offered very high margin to the retailers. However, the market share of the said medicines was small and outside the price control.

According to the official statistics with the NPPA, the agency could recover just Rs 100.50 crore of the total Rs 1438.45 crore demanded through notices against the companies on grounds of overcharging so far.

Under the formulation category, the NPPA so far approved 394 packs during the current financial year. Prices of 37 packs were increased and prices of 197 medicines were reduced. For the first time, prices of 154 packs were fixed during the year. Thus a total of 394 packs were monitored by the agency this year.

In the bulk drug category, only 16 medicines came under price fixing and prices of 12, out of the total number, were decreased. Since its inception, the NPPA has thus fixed the prices of 372 bulk drugs, sources said.

The agency has found that prices of medicines in the country have increased at a lesser rate than prices of general commodities. Rise in the price of bulk drugs, rise in cost of production or import, higher freight rates and the hike in the CIF price and depreciation of rupee were said to be the main causes for increase in the prices of medicines, the agency said.