DoP rejects drug price review pleas of DRL, Abbott

DoP released drugs (price control) order, governing the price control mechanism for 348 drugs in the national list

The Department of Pharmaceuticals has rejected a review petition filed by leading drug makers, including Dr Reddy's Laboratories (DRL) and Abbott Healthcare, on ceiling of prices on their products.

While Abbott Healthcare filed the petition against the fixing of ceiling price of its Phenobabitone tablets--60mg and 30 mg--and Promethazine Injection, 25mg/ml, DRL opposed fixing of the ceiling price of Omeprazole 20 mg capsules.

On May 15, 2013, the Department of Pharmaceuticals released drugs (price control) order, governing the price control mechanism for 348 drugs in the national list.

As per this order, the prices of each of the drugs are determined on the average of all drugs having an Indian market share of over 1 per cent by value. The individual drug price notifications are being released in a phased manner by the National Pharmaceutical Pricing Authority.

"The review application of the Petitioners (Abbott) is rejected on the ground that NPPA strictly followed the provisions contained in DPCO, 2013, PTR of the company when compared with the others show that they were chagrining 200 per cent to 300 per cent more than other companies and they cannot be allowed to overcharge as per provisions of DPCO, 2013.

"However, the additional information brought to the notice of NPPA may be cross examined by them with the help of IMS Health and if deemed necessary, NPPA may re-validate such data by appropriate survey or evaluation as authorised under para 9 of DPCO, 2013," the DoP order said in case of Abbott's review petition.

Dr Reddy's was given a hearing granted by DoP on August 16 and the issues involved in the review application have been examined based on the record note of discussions of the personal hearing and other documents on record.

"Review application of the petitioners is rejected on the grounds that price fixed by NPPA is as per the provisions of DPCO, 2013," the DoP order said in case of DRL.

Alembic Pharmaceuticals Ltd filed the review petition against the fixing ceiling price of its Azithromycin 500 mg tablets, which was also rejected.