NPPA slaps Rs 20-cr fine on Cipla for overcharging

Last Updated: Monday, December 7, 2009 - 22:27

New Delhi: Pharma company Cipla Ltd on Monday
said it has received notices, demanding about Rs 20.15 crore,
from drug price regulator for allegedly over-pricing two
drugs.

The company has received a notice from sectoral regulator
the National Pharmaceutical Pricing Authority demanding an
amount of about Rs 20.14 crore, comprising allegedly
overcharged amount of Rs 11.54 crore and interest thereon of
Rs 8.59 crore, in respect of the drug Ciprofloxacin, Cipla
said in a filing to the BSE.
"The period to which these amounts pertain to have not
been specified in the demand notice," the company said in its
filing to the Bombay Stock Exchange (BSE).

The drug maker also got a notice demanding an amount of
Rs 11 lakh comprising interest up to April 2009 in respect of
the drug Doxycycline, it further said.

Both the drugs are antibiotic, used in treatment of
bacterial infections.

According to Cipla, notices are contrary to rulings of
the Supreme Court and the demand is not tenable. There were no
details of the ruling in the Cipla statement.

"These demands are contrary to the orders of the Supreme
Court and the company has received legal advice that entire
amounts demanded by the government are not tenable and
sustainable," Cipla said.
In July also, Cipla had received notices from NPPA for
alleged over-pricing of two drugs--Salbutamol and Norfloxacin.

In July, Cipla had got a demand notice of Rs 64.39 crore
for asthma drug Salbutamol and Rs 2.19 crore for Norfloxacin,
used in treating infections.

NPPA, under the aegis of Chemicals and Fertlizers
Ministry, is responsible for keeping an eye on the price
movement of dugs in the country.

Shares of Cipla today settled the day at Rs 351.5, down
1.99 per cent from its previous close on the BSE.

PTI



First Published: Monday, December 7, 2009 - 22:27

More from zeenews

 
comments powered by Disqus