India’s National Pharmaceutical Pricing Authority (NPPA) has reportedly fined Swiss drug maker Novartis‘ subsidiary in the country for Rs3bn ($48.9m), for over pricing its painkiller medicine Voveran.
Voveran is an analgesic brand based on diclofenac, a component under direct price control of the government.
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The drug pricing regulator has issued a showcause notice to the company and has ordered an explanation within the next two weeks for failing to take preventive measures against overcharging, reported Business Standard.
Confirming the receipt of a notice, a Novartis spokesperson was quoted by the news publication stating: "However the basis of the demand itself has been challenged by us before the Delhi High Court. Since the matter is sub judice, we are unable to comment further."
From April, Voveran was one of the top ten brands in the domestic drug retail market, with annual sales of around Rs2250m ($36.7m), which was revealed through data provided by IMS Health.
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In May 2013, the NPPA included 348 medicines under price control, where prices will be capped for these medicines at an average of the prices of all drugs, with more than 1% share in their respective segments.
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By GlobalDataCompanies including Novartis, Cipla and GlaxoSmithKline (GSK) challenged the decision in the court in July 2013, to avoid replacing their current stocks in the market within 45 days, with new ones mentioning revised prices.
Image: Novartis AG headquarters in Basel. Photo: courtesy of Leoboudv.
