NPPA's 'suspicion' of drug overpricing upsets industry

 E Kumar Sharma        Last Updated: February 28, 2017  | 20:09 IST
NPPA's 'suspicion' of drug overpricing upsets industry
NPPA's 'suspicion' of drug overpricing upsets industry

The National Pharmaceutical Pricing Authority (NPPA) has put out a list of 634 drugs for 'suspected overcharging'. The exact term used is "suspected cases of non-compliance." These include drugs from some of the leading pharmaceutical companies like Sun Pharma, Cipla, Dr Reddy's, Alembic, Abbott Healthcare, GlaxoSmithKline among others.

They have been suspected of selling drugs at a price higher than the ceiling price fixed for them. However, it does not seem to have gone down well with the industry. Those within the pharma industry are miffed that a list of 'suspected' cases has been issued as against a categorical statement on fixing the blame.

Reacting to the development, D. G. Shah, Secretary General of the Indian Pharmaceutical Alliance, which has leading Indian pharmaceutical companies as its members, says: "They are already saying it is a suspicion. Alembic has already said it is 100 per cent compliant. We have asked our other members to check and let us know." 

He feels considering that there is an element of reputational risk involved, a categorical statement based on detailed research and fact finding from the field rather than suspicion would have been better for the industry and a stronger signal for enforcement.

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