NPPA asks pharmas to make good promise on price cuts

NEW DELHI: Pharma majors Cadila Healthcare, Alembic, Emcure, Lupin, Medley Pharmaceuticals and Wockhardt have found themselves in a tight spot after the industry’s magnanimous offer to drop prices of certain drugs backfired.

The drug price regulator has issued notices to them seeking explanation on why the brands on which they offered to slash prices were in the market without the mandatory government-fixed prices.

Last year, the above mentioned companies among others had volunteered to cut prices of 886 drugs, to persuade the government not to implement a new, more stringent, drug policy.

As per the law, if a drug contains one or more of an ingredient that is price-controlled then the finished product is also under price control. Companies are required to get a price fixed by the National Pharmaceutical Pricing Authority (NPPA) for these brands every time the regulator fixes or revises the ingredient’s price.

The NPPA, which scrutinised the list, has found that these companies have allegedly violated drug pricing norms in a number of cases. Cadila Healthcare tops the list with violations on 87 products. Of these, the company had not allegedly obtained the required government approved price on 33 brands and was allegedly overcharging the consumer on 54 brands.

NPPA’s show cause notices do not mean establishment of guilt. The regulator will review the cases again in the light of the explanation and may give a personal hearing before proceeding further. The NPPA can bring the drug under price control if it is not satisfied with the explanation.

NPPA has asked Alembic to explain why it had not obtained a government fixed price for Bivinal Syrup 200 ml while Wockhardt has been asked to clarify on the pricing of Miltiwocx 10 capsule.

Lupin has been asked why it has not obtained a price for its Lupiqyl gel 30 mg and Medley Pharmaceutical has to explain the pricing of Ultiseng capsule 10s and Vitaseng capsule 10s. Emcure Ltd has been asked to explain why it allegedly overcharged the consumer on various strengths of ciprobiotic, a ciprofloxacin formulation.

Some companies have told NPPA that a few of the products are not being manufactured anymore, sources said. This raises questions on how genuine the pharma industry was in its offer to cut prices.

However, NPPA can only act on drug law violations and it is the ministry of chemicals and fertilisers’ call on how to deal with promises that were not delivered. The ministry, has recently found that of the 886 drugs, only about 250 of them are being made available in the capital at lower prices.