The list of revised prices of 44 formulations announced by the NPPA earlier this week included, for the first time, drugs manufactured by small-scale companies. Speaking to The Financial Express, resident director of Indian Drug Manufacturers Association (IDMA) OP Grover said that the move to fix prices for drugs manufactured by small companies went against the provision of the Drug Price Control Order.(DPCO)

As per the DPCO small companies could be brought under the ambit of price control only if ceiling prices were fixed for the formulations. "The very fact that ceiling prices were not fixed for the formulation makes the whole exercise illegal. It is clear that the purpose of downward revision of prices for anti-fungal drugs was to solely target the smallplayers."

The IDMA would soon give a representation to the government requesting that the orders fixing prices for the small companies should be withdrawn.

However, if the matter ultimately goes to the court, Grover is sure that the industry will win the case. "Had the NPPA notified a ceiling price, we would have not had any case against the downward revision of prices. Since that is not the case, there is no reason why we should lose."

Since the anti-fungal formulations are made out of a single combination, the NPPA would not be able to offer the argument that it was difficult to fix a ceiling price for the whole range of formulations, said Grover. "It is only in the case of multi-combination formulations that such arguments might be considered." Anti-fungal formulations manufactured by small companies for which prices have been fixed include Dermonorm, Dermofulvin, Fungal, Fungivin, Gris OD, Grisomed, Grisoral, Griseoderm Fulvin, Fulvin-M and Walavin.