Merck receives demand notice from NPPA for overcharging
New Delhi : Drug firm Merck said it has received demand notice from the national drug pricing regulator NPPA, alleging overcharging on Polybion L 100 ML syrup and will challenge it.
"The company has received a demand notice from National Pharmaceutical Pricing Authority (NPPA) demanding a sum of Rs 11.68 crore plus interest Rs 15.78 crore alleging overcharging of price of the formulation, Polybion L 100 ML syrup, during the period from January 2006 to June 2009," Merck said.
In a statement to the bourses the company said the government has issued the demand notice despite the fact that the company was neither a manufacturer nor a marketer of the subject drug.
"The company will challenge the said orders and will defend itself vigorously. The company has been legally advised. It has a good defendable case on merits," Merck Ltd said.
Shares of Merck Ltd closed at Rs 997.50 per scrip on BSE, up 0.16 per cent from its previous close.