The country’s National Pharmaceutical Pricing Authority plans to issue showcause notices to several drugmakers for increasing the maximum retail prices of 331 drug packs beyond the permissible limit. Dr Reddy’s, Emcure, Torrent and Cadilla are among the major drug companies whose products are on the list.

While 279 notices are preliminary, which means the agency wants an explanation for the unusual price hikes, 52 are serious because the NPAA doesn’t like what it hears.

“If the companies fail to give satisfactory replies to the second set of notices, the NPPA can fix the prices of those drugs and ask the companies to comply,” says NPPA Chairman Ashok Kumar said. All these cases pertain to those drugs that are not under regular price control.

Usually, companies provide valid reasons for a price increase or they agree to reduce prices to the permitted level, which is up to 10 percent in a year. In the case of the 52 notices, the companies will either reduce the prices, or let the NPPA prescribe the maximum retail price.

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