Over-pricing of drugs: HC directs Pharma firm to seek review

Delhi High Court today directed a Hyderabad based pharma firm to seek a review with competent authority of the price determined by National Pharmaceutical Pricing Authority (NPPA) for its Tetanus vaccine.
It also asked the company M/s Biological E Ltd, which manufactures a Tetanus vaccine with the brand name Bett Tetanus Vaccineto, to deposit 25 per cent of the over charged amount on its drug with it till the disposal of case.
"The appellants (company) shall apply for a review of the price determined vide notification dated June 14, 2013 read with corrigendum dated February 17, 2014, in terms of Drug Price Control Order 2013, on or before January 30, 2015.

"If the review is filed within the time fixed above, the same shall be considered by the Government of India and an appropriate order shall be passed on or before March 4, 2015, following due process of law," it said.
The bench, headed by Chief Justice G Rohini, further directed the appellants to furnish security of 25 per cent of the amount demanded by NPPA with the Registrar General within two weeks.
It said that an undertaking should also be filed before the court by way of affidavits of two directors of the company saying that in the event of dismissal of their plea or subject to further orders in the appeal, they would pay the said sum of 25 per cent of the demand to NPPA within one month.

The bench however said the matter involved contentious issues and substantial questions of law and it appeared that a prima facie case has been made out by the appellants.
The court had yesterday reserved its verdict on the company's plea seeking quashing of its single judge bench order directing it to deposit 25 per cent of over-charged amount on its drug with NPPA.