Torrent asked to fall in line on insulin price

Continuing its face-off with insulin makers, drug regulator National Pharmaceutical Pricing Authority (NPPA) has asked Torrent Pharma to comply with the insulin-ceiling price that it has fixed. Torrent Pharma had challenged a 2012 order by the regulator, which said insulin price must be slashed by 17 per cent. Now, in a letter to the company, the regulator has reiterated that Torrent, as well as other insulin makers, will have to follow the price fixed by it until any further price revision is notified.

While the move adds fuel to the existing battle between the industry and NPPA on pricing issues, consumers may benefit as Torrent Pharma’s insulin prices are likely to drop significantly. After Torrent challenged the order, the Department of Pharmaceuticals (DoP) issued a review order on January 15, asking the NPPA to consider the points raised by the pharma company and re-examine the case.

“While we are examining the data, Torrent Pharma has written to Secretary, Department of Pharmaceuticals, stating that taking into account the directions given by DoP in its review order, the company is permitted to sell the drug at pre-revised price,” an NPPA official told Business Standard.

The last revision by NPPA in November 2012 slashed the price of human insulin-40 IU by almost 17 per cent from its earlier price notified in January 2010. Torrent Pharma sells its human insulin under various brands such as Mistard 40iu, Human Actrapid 40iu, Human Mixtard 40 iu and Human Insulatard 40iu. Due to NPPA’s new order, prices of these products fell significantly.

In a letter addressed to Torrent Pharma’s managing director, NPPA wrote: “…the interpretation/assumption stated in your letter is misconceived, totally incorrect and not borne out of facts contained in the review order issued by the Department of Pharmaceuticals. The review order of the DoP has not suspended the operation of the notification of the ceiling price issued by NPPA vide its notification No. SO 2734 (E) dated 16th November, 2012.”

“It may be noted that the notified price should be compulsorily followed while filing review application,” the regulator said in the letter, which is also marked to other insulin makers such as Eli Lilly and Lupin.

It further added that the price notified by it shall remain in force until further notification is issued.

The law provides that pending a decision by the government on such applications, a company cannot sell the product at a price exceeding the price fixed by the government.

Earlier, Eli Lilly had also approached the Delhi High Court against the drug pricing authority when the American company was asked to share its cost of production while it sought price revision. The prices of imported drugs were so far fixed based on their landed cost.

However, the new drug policy, which will be soon implemented, aims to bring prices of both imported and indigenously manufactured medicines at par, based on market-based pricing. The government is currently working on a new Drug Price Control Order (DPCO), which will determine the retail price of over 640 packs of essential medicines. The new DPCO, which will replace the existing one, is expected to be in place by March.

Recently, NPPA had turned down requests from many companies such as Eli Lilly, Allergan and Alcon Lab, for a price rise, as the new DPCO is yet to come. However, in public interest, the regulator had reduced prices of some medicines, including those used in the treatment of diabetes.