Fresh NPPA notices soon on firms for overcharging

A revised notice from the National Pharmaceutical Pricing Authority (NPPA) to pharma firms for overcharging on scheduled drugs is not going to raise the amount demanded from the firms to a great extent.

The Supreme Court on Friday put a stay on the Allahabad High Court order that prevented NPPA from collecting the over-charged amount on scheduled drugs.

NPPA chairman Vinay Bansal said fresh notices will now be issued against these companies. He, however, added that the apex court is yet to give a final judgment.

The rationale for over-pricing was that NPPA had not revised the conversion cost or the packaging cost before issuing fresh notices.

The NPPA later issued fresh notices to these firms after revising the conversion cost and packaging cost. Though the conversion and packaging cost were revised, the sum to be refunded has not altered much.

Amar Lulla of Cipla said, "The amount that have been talked about are all speculative. We do not know what is the exact amount." He, however, added that sum to be refunded, would not have altered much after the revision.

Officials at Ranbaxy Laboratories, which will be hit hard by the Supreme Court order, could not be reached for their comments.

Though Cipla is yet to make any payment, Ranbaxy had already deposited 50 per cent of what the NPPA had demanded before contesting its notice.