Paswan stays firm on pharma profiteering

Chemicals and Fertilisers Minister Ram Vilas Paswan has refused to consider the pleas of the pharmaceutical industry against the surprise notices issued by the National Pharmaceutical Pricing Authority (NPPA) accusing major drug companies of profiteering on over 100 medicines.

The NPPA had issued show-cause notices to the manufacturers of these medicines after their prices were seen to have risen over 10 per cent in the last one year.

The brands under question include Septran (Glaxo), Agarol (Parke Davis), Domstal (Torrent), Atocor (Dr Reddy's) and Fucidin (Ranbaxy).

Industry sources had approached Paswan, complaining that the price increase, which happened during the January-March period this year, could not be called unreasonable as the new rules were imposed with retrospective effect.

The industry felt that the trouble was caused by the sudden decision of the ministry to cut down the permissible limit for annual increase for medicines from 20 per cent to 10 per cent.

"The NPPA had come out with a notification stating only on March 14. How can they penalise us for not adhering to the rule that was never known to us? How can they act in a retrospective manner," industry sources said.

Industry representations had almost resulted in the chemicals ministry issuing a clarification to the NPPA asking it to stop action against such price revisions effected during the January-March period. However, Paswan seems to have preferred to go against the industry's interest by treating it as a "consumer" issue.

"The minister wants the action to be taken with retrospective effect. This means, the companies will have to respond to the NPPA notices," an official source said.

Meanwhile, NPPA is known to have identified 117 cases where the prices of medicines have gone beyond 10 per cent during one year. The notices on the additional 14 cases (103 cases have already been taken up) are likely to be sent soon after the agency receives a formal clarification from the ministry.

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UNDER SCRUTINY

The brands under question include Septran (Glaxo), Agarol (Park Davis), Domstal (Torrent), Atocor (Dr Reddy's) and Fucidin (Ranbaxy)

The pharma industry feels that the trouble was caused by the sudden decision of the ministry to cut down the permissible limit of annual increase for medicines from 20 per cent to 10 per cent.