GlaxoSmithKline loses appeal in Rs71.21-crore Drug Price Equalisation Account demand
13 Apr 2011
The Supreme Court has set aside GlaxoSmithKline Pharmaceuticals' appeal in the Rs71.21-crore demand raised by the central government over payments due to the Drug Price Equalisation Fund of the National Pharmaceutical Pricing Authority (NPPA).
The government had moved the Supreme Court against an order of the Delhi high court and got the demand of Rs71.21 crore confirmed. The Supreme Court has allowed the government's appeal and set aside the order of the Delhi High Court.
Glaxosmithkline said it is reviewing the contents of the Supreme Court judgment and will take necessary steps as may be legally advised. "GlaxoSmithkline is committed to operating with the highest ethical standards and will comply with all applicable legal requirements," the company said in a release.
Under the Drug (Price Control) Order, 1979, pharmaceutical companies have to follow the maximum prices prescribed for certain drugs of mass consumption.
GlaxoSmithKline is engaged in manufacture and sale of three bulk drugs, which are to be sold at the prices prescribed under the DPCO.
GlaxoSmithKline is engaged in the manufacture and sale of three bulk drugs, namely, Betamethasone Alcohol, Betamethasone 17 Valerate and Betamethasone di Sodium Phosphate, and various formulations based on these bulk drugs.