The Supreme Court has admitted the special leave petition moved by SmithKline Beecham Pharmaceuticals (SKB), currently Glaxo SmithKline India (GSK), against the Karnataka High Court judgment favouring the DPCO provision relating to 15 days deadline for drug price revisions as civil writ petition for final disposal.

The final hearing on the case is to take place within a couple of months from now. The decision to this effect came during the hearing on the case on March 26, 2004. The Industry associations like Indian Drugs Manufacturers Association (IDMA) and Organisation of Pharmaceutical Producers of India (OPPI) are also co-petitioners in the case.

The Karnataka HC had upheld the contention of National Pharmaceutical Pricing Authority (NPPA) that the prices of scheduled formulations should be revised within 15 days of the notification regardless of the manufacturing date of the product. The HC also noted that manufacturers, distributors and retailers would be liable to sell formulations from the date of such revised price list (which is required to be published within 15 days from the date of notification) at the revised prices and not the prices mentioned on the label of the container or pack.

The HC order had also stated that “the contention of the petitioner that revised prices will not apply to the existing stocks but only to new batches of drugs and formulations to be manufactured after 15 days of the notification cannot be accepted. The provisions of the DPCO are clear that prices should be revised within 15 days even in regard to the formulations, which were manufactured.”

Following the court order, the NPPA had directed the drug manufacturers to implement the prices in respect of bulk drugs/formulations fixed/notified by NPPA within 15 days of the notification and ensure that the stocks are sold after the prices are revised.

In one of the earlier hearings, SC had granted a stay order in favour of GSK, which prevented NPPA from taking any action against the company for not revising the prices within 15 days of the official notification.