Overcharging on Anti-diabetic, Cardiac Care Drugs: Rs 245.96 crore recovered from Pharma Firms, Minister informs Parliament

New Delhi: Through a recent reply, the Minister in the Ministry of Chemical and Fertilizers informed the parliament about the sale of anti-diabetic and cardiac care drugs in India and the measures taken by the Government to keep a check on the overcharging by the pharmaceutical companies on such drugs.

This came in response to a query raised by Sudheer Gupta and Gajanan during a Lok Sabha session. The members sought details and reason for the increase in the sale of anti-diabetic and cardiac care drugs in India in 2019. They further questioned if the Government has taken any step regarding the production of such drugs and checking the overcharging by the pharmaceutical companies in the country' and steps to bring all such drugs under the National Pharmaceutical Pricing Authority (NPPA) to regulate and put a check on the pricing of the said drugs.

Responding to the query, DV Sadananda Gowda, Minister, Ministry of Chemical and Fertilizers stated that according to market research organization All Indian Origin Chemists & Distributors Limited (AIOCD) - Advanced Working, Action & Correction System (AWACS), Anti-diabetic medicine sales rose 12.6% year-on-year, with a new class of drugs called SGLT2 (sodium-glucose co-transporter 2) inhibitors driving growth, while cardiac care drugs rose 11.7%. Among cardiac medicines, it was the combination drug of sacubitril and valsartan that led to sales growth.

"The growth in Anti-diabetic medicines was 13.4%, 12.9% & 12.6% for the year 2017, 2018 and 2019 respectively on year to year basis. Further, the growth in Cardiac Care medicines was 5.5%, 10.7% & 11.7% for the year 2017, 2018 and 2019 respectively on year to year basis" he said

India is home to one of the largest number of diabetes patients in the world estimated to be over 70 million, while heart diseases are known to be one of the biggest causes of death in the country, Gowda added.

He further mentioned that NPPA monitors the prices of both scheduled and non-scheduled formulations (including Anti-diabetic and Cardiac Care formulations) on a regular basis to check to overcharge by pharmaceutical companies. Whenever companies are found to be overcharging the consumer in the sale of medicine, NPPA issues notices to the companies to deposit the overcharged amount along with applicable interest under section 7A of Essential Commodities Act, 1955.

NPPA has detected and issued about 162 demand notices against the pharmaceutical companies for overcharging consumers on the sale of Anti-diabetic and Cardiac Care formulations whose prices were fixed under para 19 of the Drugs (Prices Control) Order, 2013 (DPCO, 2013).

"Demand Notices have been issued for a total amount of Rs. 808.16 crore and an amount of Rs. 245.96 crore has been recovered from the Pharma Companies for violation of price fixed under para 19. The company-wise detailed list of overcharging cases for violation of ceiling price and price fixed under para 19 (Anti-diabetic and Cardiac Care formulations) where demand notices have been issued is available on NPPA's website www.nppaindia.nic.in," the Minister stated. 

Also Read: NPPA Show-Cause Notices To Sun Pharma, Glenmark, Abbott, Lupin For Self-Exemption From Price Cap For Anti-Diabetic Drugs

He went on while stating that NPPA has fixed the ceiling price of 860 formulations included in Schedule-I of DPCO, 2013 which also includes medicines relating to the treatment of diabetes and cardiac problems as detailed below:

NPPA has also capped the prices of 106 formulations related to the treatment of diabetes and cardiovascular diseases under para 19 of DPCO, 2013 vide order dated 10th July 2014.

Also, NPPA has fixed the price of coronary stents vide order dated 13th February 2017. By this, the price for coronary stents was reduced up to 85% for Bare Metal stents and 74% for Drug-Eluting Stents. This has resulted in saving of Rs. 4547 crore annually to the consumers/patients.

Further, NPPA monitors the prices of non-scheduled formulations as per para 20 of DPCO, 2013 so that their MRP does not increase by more than 10% of MRP during the preceding 12 months.