Delhi High Court restrains NPPA from taking coercive action over ₹151 crore drug pricing demand

The Delhi High Court has directed the National Pharmaceutical Pricing Authority (NPPA), India's drug price regulator not to take coercive steps against a Pharma company over a ₹151.19 crore demand for alleged overcharging and interest on asthma medication. NPPA alleges that the company sold the drug above its applicable ceiling price under the Drugs (Prices Control) Order, 2013 (DPCO), which regulates prices of specified essential medicines. This was challenged by the company stating that its inhaler contains different drug strengths from those listed in the DPCO and therefore cannot be subjected to the same price ceiling. It also disputed recovery from 2016, as the comparable formulation's ceiling price was fixed only in 2019. The Court granted interim protection until January 11, 2027, finding a prima facie case in the company's favour.