 "Novartis receives NPPA notice imposing Rs 300-cr penalty for overcharging")
The National Pharmaceutical Pricing Authority (NPPA) has slapped a Rs 300-crore fine on Swiss multinational Novartis for overcharging consumers on sale of Voveran, its best-selling painkiller medicine, according to a Business Standard report.
Voveran is based on diclofenac, a component that is under the government's direct price control, adds the report. According to IMS Health annual data, Voveran, with annual sales of about Rs 225 crore, was among the top 10 brands in the domestic drug retail market as of April this year.
In a BSE filing, Novartis India Ltd has confirmed the receipt of NPPA notice. It added that the company will duly respond to the same. The BSE filing said, “Novartis believes the show cause notice to be erroneous and entirely misconceived and Novartis will challenge both the basis of the demand as well as the entire quantum of the demand. Novartis had already filed a Writ Petition (prior to issue of the SCN) before the Hon'ble Delhi High Court and the matter is sub-judice.”
Implemented in May last year, the new drug price control order has brought 348 medicines under price control. However, Novartis, Cipla and GlaxoSmithKline had approached the court in July last year to protest against provisions of the new order, which required them to replace within 45 days their stocks in the market with new ones mentioning revised prices.
FOR COMPLETE REPORT READ: NPPA slaps Rs 300-crore penalty on Novartis
Voveran is based on diclofenac, a component that is under the government's direct price control, adds the report. According to IMS Health annual data, Voveran, with annual sales of about Rs 225 crore, was among the top 10 brands in the domestic drug retail market as of April this year.
In a BSE filing, Novartis India Ltd has confirmed the receipt of NPPA notice. It added that the company will duly respond to the same. The BSE filing said, “Novartis believes the show cause notice to be erroneous and entirely misconceived and Novartis will challenge both the basis of the demand as well as the entire quantum of the demand. Novartis had already filed a Writ Petition (prior to issue of the SCN) before the Hon'ble Delhi High Court and the matter is sub-judice.”
Implemented in May last year, the new drug price control order has brought 348 medicines under price control. However, Novartis, Cipla and GlaxoSmithKline had approached the court in July last year to protest against provisions of the new order, which required them to replace within 45 days their stocks in the market with new ones mentioning revised prices.
FOR COMPLETE REPORT READ: NPPA slaps Rs 300-crore penalty on Novartis