79 demand notices issued to drug cos for overcharging: Govt

NEW DELHI: National drug price regulator NPPA has issued 79 demand notices to pharmaceutical companies for overcharging for non-scheduled medicines, Parliament was informed today.

In a written reply to Lok Sabha, Minister of State for Chemicals and Fertilisers Mansukh L Mandaviya said National Pharmaceutical Pricing Authority (NPPA) is taking action against companies which are found to have increased the prices of non-scheduled medicines more than 10 per cent of MRP of preceding 12 months.

"Prelimnary notices have been issued to more than 2,000 manufacturers. Based on the replies received from the respective manufacturers, 464 cases have been dropped, demand notices have been issued in 79 cases and show cause notices have been issued in 11 cases so far," the minister said.

As per Para 20 of DPCO, 2013, the government monitors the maximum retail prices of all the drugs, including the non-scheduled formulations and ensure that no manufacturer increases the maximum retail price of a drug more than 10 per cent of the MRP during preceding 12 months.

In cases where the increase is beyond ten per cent of MRP, it is mandated that the entity shall reduce the same to the level of ten per cent of MRP for the next 12 months.