Hon’ble Bombay high court rejects petition of Sun Pharmaceuticals Industries Ltd. filed against price fixing of Ciprofloxacin HCL Tablet 250 mg by National Pharmaceutical Pricing Authority (NPPA). Sun Pharma filed petition under paragraph 31 of the Drugs (Prices Control) Order, 2013 against notification S.O. No.1882(E) dated 13.07.2015 issued by the NPPA fixing the ceiling price of Ciprofloxacin.
The main grievance of the Sun Pharma is that the data considered by NPPA was pertaining to September, 2013 while the notification was issued by them in September, 2014, which is one year later while the period is six months as per DPCO, 2013. Further, Sun Pharma stated that they did not avail any WPI. However, WPI was due to for the year 2012 as well as 2013.
NPPA clarified that at the outset price fixation of essential medicines of Ciprofloxacin 250 mg has been carried out by NPPA in accordance with the provisions of DPCO, 2013. There is no bar neither in 2013 nor it was in DPCO 1995 to carry out price fixation of Ciprofloxacin.
NPPA denied the contention of the review applicant as NPPA has carried out price fixation in 1995 in accordance with the provisions of DPCO,1995 which were continuing till the promulgation of DPCO, 2013. In accordance with the provisions of para 10 of DPCO, 2013, NPPA has carried out the price fixation of Ciprofloxacin as per policy listed in 1995. Ceiling prices fixed by the company for Ciprofloxacin were carried out in 2013 as per para 10 of DPCO 2013. As regards the contention of petitioner company about continuing the stay in respect of Writ Petition 6135 of 2003 in Hon’ble Bombay High Court, NPPA stated that no stay was continuing as per available information, and requested the company to give the copies of that, which was not given to them. However, petitioner company forwarded certain copies of the judgements, which were not relevant and cannot be extended in this case.
Another point raised by Sun Pharma that prices under para 10 read with para 4 of DPCO 2013 have to be fixed by taking PTR of all formulations having market share of 1% is not maintainable as the price notified by NPPA under DPCO 1995 have not been quashed by the Hon’ble Court. Only a direction to NPPA has been given against any coercive action that too against a bank guarantee of difference in the notification and selling prices. Therefore, any price which is subject to review by the Hon’ble Court cannot be considered for price fixation until it reaches finality.
After hearning government concluded that, "In view of the examination above, the review application of the company has no merit and is dismissed."
