Chennai: The Drugs Control Administration (DCA) in Telangana has filed a case against one Himachal Pradesh based drug manufacturer under the Essential Commodities Act, 1955 for violation of Drug Price Control Orders (DPCO).
The role of the marketing company has also been indicated in the case as it is also liable for the corruption and the unethical business practice, a senior department officer who has knowledge about the case told Pharmabiz.
According to the office of the director general, the manufacturing company was overpricing an anti-cancer drug whose price was fixed by the national drug price regulator.
The drug, ‘Dacazee 500 injection’ (dacarbazine injection IP 500 mg), was seized from a medical shop in Karimnagar district in a raid conducted by the sleuths of the DCA last week. The National Pharmaceutical Pricing Authority (NPPA) fixed the price at Rs. 518.79 for one injection (ceiling price). Hence the maximum retail price (MRP) including GST 12 %, should not be more than Rs. 581 for one vial. But the MRP of the drug printed on the label was Rs. 1,250 for one vial and the department has observed that it is in violation of the DPCO, 2013.
According to information received from the director general of the DCA Telangana, the drug, Dacazee 500 injection, was manufactured by Zee Laboratories Ltd in Himachal Pradesh. The label of the drug product bore the MRP as Rs. 1,250 for one vial. The officials seized the product in a raid at a medical shop in Karimnagar. While selling in the market, the price of the product shall be in accordance with the ceiling price fixed by the NPPA. Here the norm was violated by the company, said the officer.
The officer said Dacazee 500 injection is used to treat cancer of the lymph system (Hodgkin’s disease) and malignant melanoma (a type of skin cancer). The firm was found to be charging an excess of Rs. 668.95, which is more than double the ceiling price fixed by the Central government.
M Srinivasulu, assistant director, Karimnagar and P Karthik Bharadwaj, Drugs Inspector, Karimnagar are among the officers who carried out the raid. Further investigation will be carried out and action will be taken as per the law against all the offenders. The prices of essential medicines should be in accordance with the ceiling prices fixed by the Central government.
The department has informed that overpricing of essential medicines is a violation under Drugs (Prices Control) Order, 2013 and stringent action will be taken as per the law against violators. The penalty includes imprisonment or fine or both, based on the nature of violation. NPPA has fixed ceiling prices for 700 scheduled formulations based on the National List of Essential Medicines (NLEM), 2022 and retail prices for 2,607 non-scheduled formulations under DPCO, 2013 till December 31, 2023.
