Even as the Madras High Court has once again postponed the hearing on the controversial banned drugs case to June 21, the Confederation of Indian Pharmaceutical Industries (CIPI) has decided to withdraw the case. It was on CIPI's petition that the court had on March 15 allowed interim stay on the issue allowing the companies to liquidate their stocks.

CIPI sources said that the industry's purpose of liquidating the stocks of the six banned drugs has already been solved as almost all the stocks of these drugs have been liquidated by the companies during the last more than four months when the interim stay was in order on these drugs. Besides, the CIPI is short of funds to continue the case in court.

“In the long run, the CIPI has to spend a lot of money to fight the case and we are short of funds. With no financial assistance coming from the big companies to fight the case, we thought it fit to withdraw the case,” said CIPI chairman TS Jaishankar.

The dominant view in the CIPI is that continuing the case will be a cumbersome and costly exercise as it has to provide scientific data to the court to prove its stand. Since the main purpose of liquidating the stocks have been achieved, it is better to withdraw the case, instead of fighting the case against the DCGI office, sources in the CIPI said.

In a gazette notification dated February 10, 2011, the union health ministry had banned six of the most controversial drugs in the country with immediate effect due to its adverse effects on human health. These drugs included the non-steroid anti-inflammatory drug nimesulide (below 12 years age), gastroprokinetic agent cisapride, decongestant drug Phenylpropanolamine (PPA), human placenta extracts, Sibutramine & its formulations and R-Sibutramine & its formulations.

Immediately after the notification, the CIPI had moved the Madras High court, praying to allow time for the companies to liquidate their stocks. In its order, the court allowed the drug companies to liquidate the stocks of nimesulide suspension and PPA. Later on March 23, the court merged the CIPI case with another similar case filed by pharma major Cipla Ltd. Hearing the petition filed by Cipla, the court had stayed the entire notification of the ministry (GSR 82 E) dated February 10, 2011 in which it had banned six of the most controversial drugs in the country with immediate effect.