Cipla receives notices from NPPA for alleged overcharging
Drug firm Cipla said it has received notices from the drug price regulator National Pharmaceutical Pricing Authority allegedly for over-pricing two drugs.
By PTI |
MUMBAI: Drug firm Cipla on Thursday said it has received notices from the drug price regulator National Pharmaceutical Pricing Authority (NPPA) allegedly for over-pricing two drugs.
The company has received a demand notice for Rs 64.39 crore, which includes Rs 43.29 crore, allegedly overcharged, and interest of Rs 21.10 crore up to June 2009 in respect of asthma drug Salbutamol, Cipla said in filing to the Bombay Stock Exchange.
It has also received another notice demanding Rs 2.19 comprising an allegedly overcharged amount of Rs 1.45 crore for the period October 2005 to March 2006 and an interest component of Rs 74 lakh for the drug Norfloxacin, used in the treating infections, the company said.
The company said the notice is contrary to a Supreme Court ruling and the demand is not tenable. There were no details of the ruling in the Cipla statement.
"These demands are contrary to the orders of the Hon'ble Supreme Court of India and the company has received legal advice that the entire amount demanded by the government is not tenable and sustainable," Cipla said.
The company has received a demand notice for Rs 64.39 crore, which includes Rs 43.29 crore, allegedly overcharged, and interest of Rs 21.10 crore up to June 2009 in respect of asthma drug Salbutamol, Cipla said in filing to the Bombay Stock Exchange.
It has also received another notice demanding Rs 2.19 comprising an allegedly overcharged amount of Rs 1.45 crore for the period October 2005 to March 2006 and an interest component of Rs 74 lakh for the drug Norfloxacin, used in the treating infections, the company said.
The company said the notice is contrary to a Supreme Court ruling and the demand is not tenable. There were no details of the ruling in the Cipla statement.
"These demands are contrary to the orders of the Hon'ble Supreme Court of India and the company has received legal advice that the entire amount demanded by the government is not tenable and sustainable," Cipla said.
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