Alembic Ltd has challenged the government's interpretation of the new drug pricing order, by seeking a formal review of the way the national pharma pricing authority has fixed price caps of essential drugs.
This Gujarat based firm, has filed a plea with the department of pharma, saying it doesn't agree with the manner price ceiling of anti-biotic Azithromycin (500 mg) has been determined, and submits its own calculation to show how the price cap ought to have been set higher.
In effect, it has contested the fundamental way, the drug price regulator has interpreted 'brand' while setting the rate-caps for drugs enlisted in the National List of Essential Medicines.
A review of pharma department is the first redressal forum for companies before they can decide to knock the door of courts to seek further judicial remedy on the issue.
What the pharma department rules in this case would be keenly watched, as that would decide what constitutes 'brand' under the new drug price control order.
This Gujarat based firm, has filed a plea with the department of pharma, saying it doesn't agree with the manner price ceiling of anti-biotic Azithromycin (500 mg) has been determined, and submits its own calculation to show how the price cap ought to have been set higher.
In effect, it has contested the fundamental way, the drug price regulator has interpreted 'brand' while setting the rate-caps for drugs enlisted in the National List of Essential Medicines.
A review of pharma department is the first redressal forum for companies before they can decide to knock the door of courts to seek further judicial remedy on the issue.
What the pharma department rules in this case would be keenly watched, as that would decide what constitutes 'brand' under the new drug price control order.