NPPA accused of colluding with pharma firms to sell drugs with same MRP at different prices, denies claims

This comes in response to Jammu Pharmaceutical Distributors Association (JDPA) alleging pharmaceutical companies resorted to corrupt practices by selling most of the medicines at different prices to different sectors despite having same MRP in active connivance with the NPPA.

Issuing a clarification on the claims, NPPA said that charging different prices below the applicable ceiling price or Maximum Retail Price (MRP) to different sectors by pharmaceutical companies is not under the purview of the NPPA.

According to a recent media report in the Daily Excelsior, while addressing a press conference, Rakesh Gupta, president of JPDA, voiced his concerns and accused pharmaceutical manufacturing companies of engaging in shocking malpractices by selling most drugs at different costs to different sectors despite having the same MRP.

Further, he claimed that all this was happening with the active connivance of the National Pharmaceutical Pricing Authority (NPPA), Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers, Government of India, which is responsible for regulating the prices of drugs under the Essential Commodities Act and the Drugs Price Control Order.

He also added that he had warned both, the manufacturers and the NPPA, against engaging in unethical practices such as plundering poor people and profiting from their agony.

In light of the foregoing, the JPDA president appealed to the Chief Justice of India to take suo moto cognizance of the entire matter and issue notice to the concerned Ministry and pharmaceutical manufacturers to take time-bound corrective measures in the larger interest of suffering humanity and sell medicines to different sectors at a single price, ensuring a level playing field for all stakeholders, reports Daily Excelsior.

In response to the above allegations, the NPPA issued a statement condemning such false statements regarding NPPA's connivance in any of the malpractices adopted by pharmaceutical companies.

"NPPA strongly condemns such false statements regarding its connivance in any of the malpractices adopted by the pharmaceutical companies. It will be most relevant here to state that NPPA takes action on violation of Ceiling Prices fixed by it for scheduled formulations, Retail Prices fixed by it for New Drugs and increasing MRP of non-scheduled Drugs by more than 10% during the previous 12 months as provided under Para-20 of the Drug Price Control Order (DPCO), 2013," the Authority said in a statement.

The NPPA further added, "Charging different prices below the applicable ceiling price/ MRP to different sectors by pharmaceutical companies is not under the purview of the NPPA. It is done purely on commercial terms by the companies which are not under the ambit of the regulatory framework of NPPA."

The National Pharmaceutical Pricing Authority (NPPA) is a regulatory body under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India, and is committed to ensuring the affordability and accessibility of medicines by fixing the ceiling price for scheduled formulations and monitoring the prices of non-scheduled formulations.