Government asks Cipla to pay up for over-pricing drugs
July 9th, 2009 - 7:34 pm ICT by IANSMumbai, July 9 (IANS) Indian drug major Cipla was issued notices by the drug pricing authority for allegedly over-pricing two drugs. The regulator has asked the company to pay up Rs.67.12 crore ($13.8 million) as penalty.
The National Pharmaceutical Pricing Authority (NPPA) has issued demand notices to the company asking it to pay “an amount of Rs.64.39 crore comprising allegedly over-charged amount of Rs.43.29 crore and interest thereon of Rs.21.1 crore up to June 2009 in respect of the drug Salbutamol”, Cipla said in a regulatory statement Thursday.
In another notice, the government has demanded that Cipla pay Rs.2.19 crore for over-charging consumers for the drug Norfloxacin, comprising allegedly over-charged amount of Rs.1.45 crore for the period of October 2005 to March 2006 and its interest of Rs.74 lakh.
Norfloxacin is an anti-bacterial drug, while Salbutamol is used to treat asthma and other bronchial diseases.
NPPA fixes or revises the prices of controlled bulk drugs and formulations and takes steps to ensure the availability of medicines in the country.
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Tags: 1 crore, asthma, bronchial diseases, bulk drugs, cipla, consumers, lakh, medicines, norfloxacin, nppa, rs 1, rs 21, salbutamol
