Pharmaceutical companies found overcharging for their products may soon have to pay hefty fines for the offence.
The National Pharmaceutical Pricing Authority (NPPA) has submitted a proposal to amend the Drug Price Control Order 2013, to provide for such penalties.

Under the present rules, companies found guilty of overpricing are only required to pay the excess amount charged with interest for the period in which the pricing norms were violated. No fines are levied.

The NPPA, in its communication to the Government, said “The regulator is of the view that there is need for a tougher law to discourage drug makers from cheating consumers, who essentially depend on doctors’ prescription and are not equipped to make an informed decision while purchasing medicines.

The proposed amendment aims to facilitate uniform pricing for existing and new products of similar formulations,
thus closing the loophole of tweaking scheduled formulations merely to escape price control.

Source: http://health.economictimes.indiatimes.com


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