NPPA drops few cases of overcharging, some cos make voluntary payments

New Delhi, 12 Dec: With the National Pharmaceutical Pricing Authority (NPPA) dropping a few cases of overcharging previously slapped against the companies, the total number of instances has come down from 812 to 807 during the last month. According to the latest document released by the pricing authority, the total amount sought to be recovered from the companies on the grounds of crossing the permissible 10 per cent increase of prices annually, the regulator sent 807 notices to recover a total of Rs.2316.87 crore as on November 30, 2011. Interestingly, the total number of cases stood at 812 for a total recovery amount of Rs.2357.95 crore till October 31 this month. "A few cases were withdrawn following the submission and documents furnished by the respective companies against the suo motto notices sent by the NPPA. This has reflected in the latest list," according to a senior official of the agency. Another recent development, as pointed by the official, is that some companies have come forward to deposit the difference in the prices on some particular formulations even before the NPPA sent notices in these regard. Regain Lab, East West Pharma, Zota Healthcare, Rhombus Pharma, Noel Pharma, Orchid Healthcare, Shalaks, Ornate Pharma Pvt Ltd, Ordain Healthcare Ltd, Merit Organics and Wockhardt Ltd are among those companies which voluntarily paid the differential amount. The total amount recovered so far since the inception of the agency stood at Rs.216.95 crore as on November 30 against Rs.216.77 crore till October 30, thus making a slight increase. As per the earlier statement on total arrears till July 31, the total number of cases were 804 to claim Rs.2350.28 crore. The total recovered amount was Rs.210.20 crore. Though all the major pharma companies find their way in the default roaster, Cipla Ltd continued to lead the tally with a total of nearly Rs.1500 crore, which accounted for more than 60 per cent of the total dues owed by the entire pharma industry of the country. Most of the cases with Cipla are in the courts still and the recovered amount from the company so far is minimal. Big companies figured in the list included Cadila, Ranbaxy, Dr Reddy’s Lab, Pfizer, GlaxoSmithKline and Merck.

Pharmabiz