International BusinessCipla gets NPPA notice on overpricing drugs
The National Pharmaceutical Pricing Authority (NPPA) has sent a notice to Cipla for allegedly overcharging customers. The government arm has imposed a fine on the company for selling Ciprofloxacin and Doxycycline medicines at a higher price than the one stated by the government.
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NPPA is an agency established to fix the prices of controlled bulk drugs.
NPPA has asked the company to pay Rs 20.1 crore for Ciprofloxacin, this includes an amount of Rs 8.6 crore as interest charges, Cipla said in a statement to the Bombay Stock Exchange (BSE).
Cipla said it has also been asked to pay Rs 1.1 lakh for Doxycycline. The period, for which these amounts pertain to, has not been specified in the demand notice, the company said.
"These demands are contrary to the orders of the Supreme Court and the company has received legal advice that entire amounts demanded by the government are not tenable and sustainable," the company notification said.
Shares of the company settled at Rs 351.50, down 1.99 per cent on the BSE today.