NPPA clarifies stand; says July price control order valid

In a crucial clarification, the National Pharma Pricing Authority or NPPA submitted before the Delhi HC that its July order, seeking to regulate prices of 108 non-essential drugs is valid and will be in force.

NPPA had issued guidelines in May for regulating prices of non essential drugs. Subsequently, an order was passed in July for regulating prices of 108 non-essential drugs.

However, in September, the NPPA had withdrawn the May guidelines leading to speculation over the fate of the July pricing order. The NPPA has now clarified that the withdrawal of the guidelines will operate prospectively and will not impact the enforceability of the July pricing order.

Pharma companies had opposed the July order and had moved the Delhi HC. Meanwhile, PILs were also filed in Delhi HC and the SC that challenged the withdrawal of the pricing guidelines.