NPPA lens on five pharma companies for hepatitis C drug overcharge - (The Economic Times via NewsPoints Desk)

• India's National Pharmaceutical Pricing Authority (NPPA) has sent how-cause notices to five drugmakers, namely Cipla, Dr. Reddy's, Hetero Drugs, Mylan and Natco Pharma, for allegedly overcharging for hepatitis C drugs, as reported The Economic Times Monday.

• According to the complaint, the drugmakers overcharged for a generic version of Gilead Sciences Epclusa, which contains a combination of sofosbuvir and velpatasvir.

• According to a source, the NPPA has asked the companies to clarify how they decided on the prices of the treatment without regulatory submissions and approvals.

• "Quantification of overcharging liability with interest and penalty to be calculated after examination of companies' replies... a penalty not less than 100% of the principal amount shall be imposed in such cases," the NPPA stated.

• The NPPA alleges that the drugmakers were selling the therapy at a price of Rs 18 500, while its maximum retail price including the Goods and Services Tax should be Rs 17 500.

• Other drugmakers that market the product include Abbott and Cadila Healthcare, but it is unclear whether they are suspected of overcharging.

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