Supreme Court stays HC order on Benadryl's pricing

The government had questioned the pricing of the medicine by Pfizer alleging that the price increase of more than 20% within a year was unreasonable

The Supreme Court on Friday stayed the Bombay High Court order on the dispute over the pricing of a cough syrup Benadryl and issued notice to Pfizer Ltd on the appeal made by the central government . The high court had asked the drug price control authority to review its order against the pharmaceutical company.

Thegovernment had questioned the pricing of the medicine by the company alleging that the price increase of more than 20% within a year was unreasonable and against public interest. The pharma major tried to justify the increase but its arguments were rejected by the officer hearing its petition. Therefore, the company moved the high court. It held that the official hearing of the application of the company had no power to pass the order against the company and to fix the price. It asked the price control authority to review the application.

The government therefore approached the Supreme Court. A bench headed by Justice Ranjana Desai has issued notice to the company to hear its defence in this appeal. The government argued that no personal hearing was essential before passing the price control order and officials of the National Pharmaceutical Pricing Authority had agreed with the price order.