NPPA updates provisional list of pharma, med-devices companies’ overcharging cases

The National Pharmaceutical Pricing Authority (NPPA), updated the list of provisional overcharging cases on its website, on January 11, 2021. 

has updated the provisional list of pharma companies’ overcharging cases. It indicates that over 100 pharma and medical device companies with a total of 324 products are part of the list. Pharma companies are more in comparison to medical devices companies in the list.

These companies come under litigation related to the DPCO 1979, 1987, 1995 and 2013. The authority has given 15 days to the concerned companies to provide relevant data which will be further examined by the NPPA.

“It has been decided to upload the provisional list of overcharging cases under litigation on the website of NPPA, so that companies involved may see the status of their case and if there is any discrepancy in the provisional list, the concerned companies may provide appropriate information/feedback. Such feedback from the companies would help in timely updation and reconsideration of data,” stated the order.

“Feedback from companies, seeking any modifications in the provisional list, should be appropriately backed by supporting documents. The interest amount in respect of cases included in the provisional list has been updated, wherever possible up to November 30, 2020. Any payment/part payment made has been adjusted from overcharged amount while updating the interest, due to which in some cases the date of updation of interest may vary. And the concerned companies may provide their feedback within 15 days from the date of publication of provisional list on the NPPA’s website,” mentioned the letter.

Commenting on the list, Sudarshan Jain, Secretary-General, Indian Pharmaceutical Alliance, said, “Presently, we are evaluating the list updated by the NPPA authority. But, it is a good step taken by the NPPA authority to update the provisional list of overcharging cases by different pharma companies.”

Rajiv Nath, Forum Coordinator, AiMeD, expressed, “If a medical devices manufacturer or marketing company has flouted the rule of over 10 per cent price increase in a year other than the need to comply with RBI and Department of Consumer Affairs (DoCA) rule for MRP to be in multiple of paisa 50 then they need to correct and reduce MRP. In case, medical devices manufacturers and importers did not know that the DPCO provisions are also applicable on them until 2018 as they were already following provisions of Packaging Rules under Legal Metrology Act, a one time amnesty may be considered with labelling correction. The DPCO rules may be considered to be amended to cap MRP over import landed price/ex-factory price for domestic by a maximum of five times for non-scheduled formulations to enable rational MRP and ethical marketing. Permission to allow over 10 per cent price increase in devices less than Rs 5 needs to be granted for MRP to be increased in multiples of 50 paise.”