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.