The Department of Pharmaceuticals (DoP) has turned down a review application by Cipla against the National Pharmaceutical Pricing Authority (NPPA) price fixation in the case of spironolactone+torsemide tablets manufactured by the company.

In a recent order, the department upheld the price fixed by the NPPA and asked the agency to recover the overcharging amount from Cipla, which is already the biggest defaulter in overcharging.

Out of the total Rs.2607 crore that the various pharmaceutical companies owed to the government so far based on the notices sent by the NPPA on the grounds of overcharging, Cipla accounted for more than half of the total amount as it had dragged all the cases to the courts.

Against the price fixation done on October 11, 2010, Cipla had approached the Department with the review petition. The department examined the case and held the hearing thereupon with both the company representatives and the NPPA.

“The issues involved in the review application were examined by the Department. Based on the record note of discussions of the personal hearing and other records available in the file the reviewing authority has decided that the review application of the Petitioners may be rejected. As neither the Petitioners nor NPPA provided any information on whether the notified prices on 11.10.2010 have been implemented, NPPA may be directed to recover the overcharged amount, if any, from the Petitioners,” the order by the department said.

In another order, the Department rejected the review application by USV Ltd against fixing of prices of Vitamin A injection, the NPPA revised way back in November 2009. The DoP upheld the contentions by the NPPA while rejecting the claims by the company against the price revision.

However, in a case relating to the revision of prices of Eltocin formulations (Kid tablets, DS tablets and suspension 60 ml bottle) by Ipca Laboratories Ltd, the Department asked the NPPA for a review. “NPPA may be directed to consider the application of the company as per the provisions of DPCO, 95 so long as it is in force and is not replaced by new DPCO,” said the order by the DoP.