Even as the new prices of 151 formulations, fixed as per the formula under the DPCO-2013, has come into effect after the 45 days of window period set by the NPPA, all eyes are on the Delhi high court which is to deliver its verdict on July 30 in a case filed by pharma major Cipla on the issue.

In its petition to the Delhi high court, Cipla has sought quashing of certain provisions in the new DPCO which mandated the pharma companies to replace the stocks in the market with those carrying reduced MRP within 45 days of the new price notification by the NPPA.

Terming certain provisions in the NPPA notification as "ultra vires and unconstitutional," Cipla, in its plea filed through Pratibha M Singh, sought quashing of certain provisions of the DPCO. It has argued that the company should be allowed to sell on old rates the existing stocks that have been manufactured and already been supplied in the market and the new rates can be made applicable on new lots to be supplied by firms.

“It is submitted that by the impugned clauses, all manufacturers have been called upon to ensure that even those scheduled formulations which have already been sold and/or manufactured and are now available for sale in the domestic market have to be sold at a price not exceeding the ceiling (plus local taxes as applicable).

“Further, the impugned clauses also stipulate that the aforesaid needs to be done within 45 days from the date of notification of the ceiling price by the government,” it said.

In the first batch of revision of prices, according to the National Pharmaceutical Pricing Policy 2012, the NPPA had fixed the prices of 151 formulations that come under the essential drugs to begin the process. The new prices, fixed as per the formula under the new DPCO, would come into effect within 45 days of the NPPA notification which was dated June 14.

Annoyed over the 45-day window period, Cipla filed a case in Delhi high court and another pharma major Alembic moved Gujarat high court.

Hearing the case, a Delhi high court bench headed by Acting Chief Justice B D Ahmed on July 26 asked the government not to take any punitive measures against the pharma company Cipla.