The National Pharmaceutical Pricing Authority (NPPA) has warned the companies against hiking the prices of bulk drugs under the scheduled category and its formulations while review petition is under process after the agency fixing the prices. The NPPA has asked the industry to make fresh application for revision of prices, if companies want to do so during this window period.

The stern instruction comes from the price monitoring agency after it reportedly came across some instances in which the companies were conveniently dodging the prices fixed on the grounds of moving review petitions. “There was rather confusion, if not deliberate act to dodge prices, among the industry with regard to whether the old or new prices should be followed. This is aimed at clarifying this point,” sources in the NPPA said.

“The NPPA has been fixing and notifying the maximum sale price of the scheduled bulk drugs and the retail/ceiling price of the related scheduled formulations under Paragraph 3, 8 and 9 of DPCO 95, from time to time. In addition, prices of bulk drugs and formulations can also be fixed or notified under Paragraph 10 of the DPCO and under certain circumstances in Paragraph 11 of the DPCO,” according to a notice by the agency.

“The Paragraph 22 of the DPCO provides that any person aggrieved by any notification issued or order made by the NPPA under Paragraphs 3, 5, 8, 9 and 10 may apply to the government for a review of the notification or order within 15 days of the date of publication of the notification in the Official Gazette or the receipt of the order by him, as the case may be, and the government may make such order on the application as it may deem proper,” it said.

“However, pending a decision by the government on the review application submitted under the above paragraph, no manufacturer, importer or distributor, as the case may be, shall sell a bulk drug or formulation, as the case may be, at a price exceeding the price fixed by the government of which a review has been applied for,” the NPPA categorically stated.

“The manufacturers or importers, if so desire, can also make application for price revision to the NPPA in respect of bulk drug or formulation in Form I, III, and IV prescribed. Such applications for price approval or revision can be entertained by the NPPA on merit in accordance with the provision of the DPCO, irrespective of pending a decision by the Government on review application submitted on existing price notification. It is pertinent to state here that it is mandatory for all concerned to follow the prices fixed by the NPPA in respect of bulk drugs and formulations under various provisions of the DPCO till the same are revised by the NPPA by issuing another price order/notification,” the notice said.