Price fixation order of 108 drugs unaffected: National Pharmaceutical Pricing Authority to High Court

NEW DELHI: The National Pharmaceutical Pricing Authority ( NPPA) today told the Delhi High Court that the Centre's recent decision to withdraw its power to fix prices of non-essential medicines would not affect its earlier order on prices of 108 drugs formulations.

The Ministry of Chemicals and Fertilizers, by a September 22 notification, withdrew the earlier guidelines empowering the NPPA to fix prices of non-essential drugs.

The NPPA told a bench headed by Chief Justice G Rohini that the Centre's notification would not come in the way of its July 10 order fixing the prices of 108 drug formulations, which include anti-diabetic and cardiovascular drugs as it applies "prospectively and not retrospectively".

"Impact of withdrawal of guidelines is prospective and not retrospective...the July 10 order remains (valid) and hence, the prices fixed under that order will continue," Additional Solicitor General Sanjay Jain, appearing for the NPPA, told the bench that also comprised Justice Rajiv Sahai Endlaw.

The NPPA's submission came during the hearing of a PIL challenging the Centre's notification that withdrew the earlier guidelines which had given NPPA the powers to fix prices of non-essential drugs in public interest.

The ASG told the court that a single-judge-bench has already been hearing a case where the Organisation of Pharmaceutical Producers of India had challenged the July 10 order fixing prices of 108 drugs formulations, which were not in the National List of Essential Medicines.

He said that the NPPA has taken a stand that its July 10 order "holds good" because the Centre's notification applies "prospectively only".

Meanwhile, the court today allowed NGO 'All India Drug Action Network', represented by senior advocate Colin Gonsalves, to be made a party in the pending case filed by the pharmaceutical producers before the single-judge bench.

The court, however, observed that since the issue before the single-judge bench was only the validity of July 10 order fixing prices of 108 drug formulations, the PIL challenging the September 22 notification and dilution of NPPA's powers will requires consideration separately.