Torrent Pharmaceuticals Faces Price Control Penalty

Torrent Pharmaceuticals has been served a notice by the National Pharmaceutical Pricing Authority for launching a drug without prior price approval. This resulted in a penalty of Rs 6.32 lakh. The company states this will not have a significant financial impact.

Torrent Pharmaceuticals revealed on Friday that it received a demand notice from the National Pharmaceutical Pricing Authority (NPPA) for Rs 6.32 lakh.

The notice, issued under paragraph 15 of the Drug Price Control Order 2013, penalizes the company for launching a new drug before obtaining price approval.

According to the regulatory filing, the financial implication of this notice is minimal for the company. The NPPA regulates drug prices to ensure availability of affordable medicines and monitors price compliance.

(With inputs from agencies.)