GLAXO
TOLD TO PAY UP FOR ASTHMA DRUG 'OVERCHARGING'
Drug price watchdog
National Pharmaceutical Pricing Authority (NPPA) is tightening
its grip on pharma majors that are 'overcharging' consumers.
This time, the
Indian arm of the world's second largest drug maker GlaxoSmithKline
is at the receiving end. The Delhi High Court has asked the
company (on January 6) to pay up half of the Rs 4.5 crore
it allegedly overcharged the consumers on its asthma inhaler
brand Ventrolin.
According to the
HC records, the Anglo-American drug maker has four weeks to
pay half of the principal amount, as well as to tender security
to its interest amounting to Rs 1.2 crore. The matter will
be heard for final disposal in March.
The direction comes
on a writ petition filed by Glaxo, challenging the notices
issued by NPPA to recover the dues the company owes by allegedly
overpricing the product between '01 and '03.
Ventrolin, which
treats the narrowing of airways by dilating bronchial muscles,
contains an active ingredient called salbutamol, the inclusion
of which in price controls is bitterly contested in the Bombay
HC.
Glaxo started selling
the product at a price higher than that notified by NPPA after
the drug was freed from price controls by the Bombay HC in
'01.
Two years later,
the government obtained a favourable decision from the Supreme
Court setting aside the Bombay HC order and asking it to decide
the case afresh. It also authorised NPPA to recover half the
overcharged amounts from individual companies involved before
the matter is finally settled.
Empowered by this,
the drug pricing body issued further recovery notices and
Glaxo approached the Delhi HC for cover. The January 6 order
mandates the company to pay the dues as the Bombay HC's final
view on the matter is pending.
In the meanwhile,
NPPA has filed an 'urgent petition' with the Bombay HC for
a speedy disposal of the policy matter. Last Monday, the apex
court allowed NPPA to continue recovering overcharged amounts
without coercive action, from companies till March.
