New Delhi: Dr Reddy’s Laboratories Ltd on Friday moved the Delhi high court (HC) against the central government’s move to fix the ceiling price for several drugs.
On 9 May and 19 May, the government, through successive notifications under the Drug Price Control Order (DPCO) revised the price of certain drugs including two drugs sold by Dr Reddy’s laboratories.
The pharmaceutical company cited the need for an urgent stay of the notifications before a vacation bench comprising of justice Manmohan Singh and Sanjeev Sachdeva which did not grant any interim relief but agreed to hear the matter on 11 July.
Dr Reddy’s laboratories told the court the company had been forced to halt the production of its drugs due to reduction of price under the notification.
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It also stated that the government did not have the power to trigger the revision of drug prices.
The price revision by the government was justified by Sanjay Jain, Additional Solicitor General, who said that it was done on the basis of the modification in National List of Essential Medicines under DPCO.
Under DPCO of 2013 the central government has the discretion to fix the price of certain drugs in the National List of Essential Medicines.
The matter will be heard next on 11 July.
Shares of Dr Reddys Laboratories closed 0.22% lower at Rs.3,064.60 apiece on BSE, while the benchmark Sensex closed 0.48% lower at 26,635.75.