The instances of overcharging by pharmaceutical companies seem to be on a slow patch and the recovery rate also continued to be sluggish during the last few months, if the latest statement by the National Pharmaceutical Pricing Authority (NPPA) is any indication.

The price regulator sent a total of 812 notices on the grounds of overcharging beyond the permissible limits of 10 per cent annual increase for formulations by the companies till October 31, 2011 since its inception to claim a total amount of Rs.2357.95 crore. The total recovery stood at Rs.216.77 crore so far, according to the statement.

During the last three months, the NPPA found only eight instances to claim Rs.7.67 crore. The recovery during this period from August 1, 2011 stood at Rs.6.57 crore. As per the previous statement on total arrears till July 31, the total number of cases were 804 to claim f Rs.2350.28 crore. The total recovered amount was Rs.210.20 crore.

Following the clarifications from the companies, the NPPA also dropped many cases during this period. The companies thus escaped unhurt included Cadila Pharmaceuticals in the cases of Answell tablets, Partenterala Pharma in the cases of Betni injenction and Ranloc injection, and Lupin in the cases of R-Cinex and Fruselect tablets.

Though all the major pharma companies find their way in the default roaster, Cipla Ltd continued to lead the tally with a total of nearly Rs.1500 crore, which accounted for more than 60 per cent of the total dues owed by the entire pharma industry of the country. Most the cases with Cipla are in the courts still and the recovered amount from the company so far is minimal. Big companies figured in the list included Cadila, Ranbaxy, Dr Reddy’s Lab, Pfizer, GlaxoSmithKline and Merck.

During the last one year period, the price monitoring agency sent out notices in 26 cases for claiming about Rs.150 crore. Till October 31, 2010, the total arrears were Rs.2208 crore. As on January 31 this year, the total number of cases was 786 and the total arrears were Rs.2328.52 crore. The total amount recovered by the end of January was Rs.207.86.20 crore.