Four pharma stocks were down between 0.27% to 3.3% on reports the drug price regulator will initiate prosecution proceedings against five pharmaceutical companies for selling select brands without getting their prices approved by the regulator.
Wockhardt (down 0.27% to Rs 301.05), Lupin (down 0.77% to Rs 538), Cadilla Healthcare (down 1.04% to Rs 270.60) and Alembic (down 3.3% to Rs 58.60) edged lower.
Reportedly, the companies, which would face legal action for allegedly selling 39 specified pack sizes of different medicines without getting prior price approvals, are Alembic, Cadilla Healthcare, Wockhardt, Lupin and Medley Pharmaceuticals.
While the largest number of cases are registered against Cadilla Healthcare for flouting prices in about 30 products, Wockhardt and Lupin face regulatory action for one case each. The National Pharmaceutical Pricing Authority (NPPA) has asked Cadilla Healthcare to pay the amount it allegedly overcharged from consumers in case of about 25 other products as well.
The regulator is also examining close to 30 other cases of overcharging, where companies may be asked to pay back the excess amount collected from consumers. In case of non-compliance, those companies may also face prosecution proceedings.
NPPA’s tough action comes days ahead of a crucial meeting of ministers on
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