In blow to pharmas, SC dismisses plea against 2014 notification

The Supreme Court has dismissed the plea against the 2014 notification seeking to regulate prices of 108 diabetic and cardiac drugs. A whole list of listed companies could get affected by order.

October 25, 2016 / 11:36 IST

26 Aug, 2025 12:21

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The Supreme Court has dismissed the plea against the 2014 notification seeking to regulate prices of 108 diabetic and cardiac drugs, reports CNBC-TV18.A whole list of listed companies could get affected by order.

In 2014, the National Pharmaceutical Pricing Authority (NPPA) came out with a notification where they sought to regulate the prices of non-scheduled drugs. It was an interesting move given how NPPA used its powers rarely. These powers allow NPPA to proceed with regulations of prices of drugs even for drugs that are not in the prescribed schedule provided there is an extraordinary situation.

Since these diseases were widespread and the market mechanism to provide cheap affordable drugs wasn’t there, there was a need for government agency to step in and regulate.

In July of 2014, they had passed this notification and given the widespread impact, companies like Sanofi,Cipla, Dr Reddy’s, Pzifer could be affected. They had taken recourse to legal remedy and had appealed to several high courts.

In September, the Mumbai HC had passed a scathing order by upholding the 2014 notification and it also gave a free hand to the NPPA to go ahead and proceed in terms recovery proceedings against pharmas. That order was challenged before the apex court. After a summary hearing, the apex hadn’t found any merit. The pharma companies had argued that the notification was arbitrary.