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Merck receives demand notice from NPPA for overcharging syrup formulation

31 Dec 2016 Evaluate

Merck has received a demand notice from National Pharmaceutical Pricing Authority (NPPA) demanding a sum of Rs 11.68 crore plus interest Rs 15.78 crore alleging overcharging of price of the formulation, Polybion L 100 ML syrup, during the period from January 2006 to June 2009.

The government has issued the demand notice despite the fact that the company was neither a manufacturer nor a marketer of the subject drug. The company will challenge the said orders and will defend itself vigorously. The company has been legally advised it has a good defendable case on merits.

Merck is engaged in manufacturing and marketing of pharmaceuticals, bulk drugs, fine chemicals and pigments. The company operates through two segments - Pharmaceuticals and Chemicals.


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