Cipla gets R73 cr NPPA notices for overpricing
Drug firm Cipla said on Tuesday that it has received fresh notices from National Pharmaceutical Pricing Authority (NPPA) for R73.16 crore for overpricing of two drugs. HT reports.business Updated: Dec 28, 2010 22:00 IST
Drug firm Cipla said on Tuesday that it has received fresh notices from National Pharmaceutical Pricing Authority (NPPA) for R73.16 crore for overpricing of two drugs.
The company has received further demand notices from the Government demanding an amount of R47.7 crore in respect of the drug salbutamol and an amount of R25.5 crore in respect of the drug ciprofloxacin, Cipla said in a filing to the Bombay Stock Exchange (BSE).
“These demands are contrary to the orders of the Supreme Court of India and the company has received legal advice that entire amount demanded by the Government is not tenable and sustainable,” the company said.
Leading pharmaceutical firms Cipla and Ranbaxy are among those which have been pulled up by the NPPA for overcharging. According to the NPPA website, as on October 31, 2010, the total estimated overcharged amount, including interest, by various pharma companies since the inception of the NPPA in 1997 was R2,208.4 crore.
So far, the authority has recovered only R202.2 crore, and is locked in litigations in several courts to recover the rest. The NPPA was established on August 29, 1997 as an independent body of experts with the task of fixing and revising drug prices, both bulk drugs and formulations, to ensure their availability.