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Delhi High Court Directs National Pharmaceutical Pricing Authority From Taking Any Coercive Steps Against Glenmark Pharmaceutical Ltd

LIVELAW NEWS NETWORK
4 July 2020 7:52 AM GMT
Delhi High Court Directs National Pharmaceutical Pricing Authority From Taking Any Coercive Steps Against Glenmark Pharmaceutical Ltd
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In a huge relief to Glenmark Pharmaceutical Ltd, the Delhi High Court today enjoined the National Pharmaceutical Pricing Authority (NPPA) from taking any coercive steps against Glenmark Pharmaceuticals Ltd pursuant to its Notification dated 03.03.2020 and Order dated 20.03.2020, wherein NPPA had fixed the retail price of the new drug being "Remo M" and "RemoZen M" containing Remogliflozin Etabonate + Metformin Hydrochloride (100mg + 500 mg and 100mg + 1000mg) ('subject formulation').

The present Writ Petition stems from an earlier writ petition filed by Glenmark Pharmaceuticals Ltd in the beginning of this year, wherein Delhi High Court vide its Order dated 29.01.2020 passed in W.P (C)1075/2020 had directed NPPA to grant a personal hearing to Glenmark Pharmaceutical Ltd and subsequently pass a reasoned order on whether the subject formulation is exempt from price control under paragraph 32 (i) of the Drugs Price Control Order, 2013 ('DPCO, 2013'). However, NPPA failed to consider the submissions made by Glenmark Pharmaceutical Ltd and notified the retail price of the subject formulation. Aggrieved by the said Notification and Order Glenmark Pharmaceutical Ltd was constrained to seek protection from Delhi High Court.

Aggrieved by the similar Notification dated 03.03.2020 two other pharmaceutical companies namely Lupin Ltd and Abbot India Ltd have also impugned the said Notification which is currently pending before Delhi High Court. Delhi High Court in the similar writ petitions will adjudicate on whether prior permission is required from NPPA by a manufacture of a new drug in order to claim benefit of exemption from price control under paragraph 32(i) of DPCO, 2013.

Glenmark Pharmaceuticals was represented by Mr. Arvind K. Nigam, Senior Advocate, assisted by Advocates from Karanjawala & Co.- Mr. Debmalya Banerjee-Partner, Mr. Rohan Sharma-Principal Associate, Mr. Kartik Bhatnagar-Principal Associate, Dheeraj P.Deo-Associate & Mr. Vardaan Wanchoo-Associate along with Mr. Abhay Jadeja-

Partner & Ms. Shruti Katakey-Partner from Crawford Bayley & Co. The Respondents were represented by Mr. Kirtiman Singh.

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