Chhattisgarh may sue Cipla for not meeting remdesivir supply requirements

The Chhattisgarh government is considering legal action against pharma major Cipla for not meeting the supply requirements for Covid-19 antiviral drug Remdesivir. 
 
Calling it a breach of contract by Cipla, Chhattisgarh Health Minister T S Singh Deo said the state was forced to buy the antiviral from another pharma company at twice the price. According to Singh Deo, the Indian pharma major had reneged on the contract signed on April 3 to supply Remdesivir injections to the state at the rate of Rs 594 plus 12 per cent goods and services tax (GST) per dose. 
 
With Cipla not supplying the medicine according to the requirement shared with the state government, it was instead forced to place an order with Mylan Laboratories in a relatively expensive deal worth Rs 1,400 plus 12 per cent GST per dose.

 

“We are mulling legal action against Cipla. We are going to hold talks with the law department to examine what legal action we can take and to what extent it has reneged on the contract. I hope other states facing such a situation are also exploring legal action,” said Singh Deo.