The Department of Pharmaceuticals (DoP) has clarified to the pharmaceutical industry that the Drugs Price Control Order (DPCO) 2013 does not distinguish between sales of medicines through retailer shop or through hospital outlets while deciding the ceiling price of a particular drug.  It is only the 'price to retailer', which is taken into account for calculation of ceiling price of a drug, the DoP clarified while disposing of a revision petition filed by the Mumbai-based pharma major Wockhardt Limited.

Earlier, Wockhardt had filed review applications with the DoP against National Pharmaceutical Pricing Authority (NPPA)'s fixation of ceiling prices for Dexamethasone Injection 4mg/ml and Gentamycin 40mg/ml through its notification S.O.  No. 1157(E) dated 28.4.2014 under DPCO, 2013.

Aggrieved by the notification fixing the prices of Dexamethasone Injection 4mg/ml and Gentamycin 40mg/ml, Wockhardt represented to the reviewing authority against this price fixation orders. Personal hearing was granted to the petitioners by the DoP on 3.6.2014.  The petitioners  were represented by Shahnawaz Khan, vice president and S. Sethi, G.M. On behalf of the NPPA, Manish Goswami, Deputy Director and Naresh Arya, Deputy Director attended the hearing.

After thorough examination of the issue, the DoP rejected Wockhardt's plea and ordered that once the brands/generic versions of a particular medicine, having MAT of more than one per cent, have been identified, it is only simple averaging of prices of all such versions, which determines ceiling price for that medicine. Para 4 of DPCO, 2013 also mentions the same. Therefore, the procedure followed by NPPA is in line with provisions of DPCO, 2013.

“The DPCO, 2013 does not distinguish between sales through retailer shop or through hospital outlets. It is only the “Price to retailer”, which is captured by IMS, that is taken into account for  calculation of ceiling price. Therefore, any such further classification or exclusion of hospital sales may not be in line with provisions of DPCO, 2013”, the DoP in its order said.