Last Updated on November 5, 2024 by The Health Master
Ceiling price
RPG Life Sciences, a prominent pharmaceutical company based in Mumbai, has recently faced a setback in its legal battle against the National Pharmaceutical Pricing Authority (NPPA).
The Department of Pharmaceuticals (DoP) has dismissed the company’s appeal to overturn the ceiling price imposed on its immunosuppressant drug, azathioprine 50 mg.
NPPA’s Decision and RPG’s Appeal
On January 6, 2023, the NPPA implemented a ceiling price of Rs. 10.04 per tablet for azathioprine 50 mg.
This decision was later revised to Rs. 11.26 per tablet on May 15, 2024.
Dissatisfied with this price cap, RPG Life Sciences filed a review application on February 1, 2023, arguing that the NPPA had made errors in its calculations.
The Core of the Dispute
The primary contention of RPG Life Sciences was the inclusion of its discontinued 10’s pack size in the NPPA’s calculations.
The company argued that only the continuing 20’s pack should be considered for price determination.
However, the NPPA countered this claim, citing the Pharmatrac data of July 2022, which indicated that both pack sizes were available in the market at that time.
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DoP Upholds NPPA’s Decision
After a thorough review of the case, the DoP sided with the NPPA’s decision.
The department acknowledged that both pack sizes were indeed available in the market in July 2022 and were accurately captured by the Pharmatrac data.
As a result, the DoP concluded that the NPPA’s methodology for calculating the ceiling price was appropriate and upheld the original decision.
Implications for the Pharmaceutical Industry
This ruling has significant implications for the pharmaceutical industry in India.
It reinforces the NPPA’s authority to regulate drug prices and highlights the importance of accurate data in price determination.
The decision also emphasizes the need for pharmaceutical companies to comply with regulatory guidelines and to provide affordable medicines to patients.
Disclaimer: This content, provides generic information only. It is in no way a substitute for a qualified medical opinion. Always consult a specialist or your own doctor for more information. The Health Master does not claim responsibility for this information.
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