NPPA: NPPA to look into diabetes drug price-fixing allegations - (The Economic Times via NewsPoints Desk)

  • India's National Pharmaceutical Pricing Authority (NPPA) plans to investigate allegations of price fixing among drugmakers regarding the diabetes drug vildagliptin, as reported The Economic Times.

  • According to a whistleblower, Abbott, Emcure, Novartis and USV Pharma have colluded to keep the prices of brands of the therapy at high levels.

  • In various partnerships, Novartis, which markets the drug under the name Galvus, has licenced the therapy to Abbott, Emcure and USV, which sell the drug under the names Zomelis, Vysov and Jalra, respectively.

  • Combined sales from the products reached Rs 822 crore last year.

  • "Though business agreement does not specify the control that Novartis exercises on its co-marketer partners in terms of controlling the market and pricing, but in reality all these companies have formed a price cartel both in trade business and institutions business," the whistleblower claimed.

  • "Novartis has received no communication from NPPA about any complaint against Galvus," the drugmaker stated, adding "all our business partners have the freedom to set their prices for the products where they have marketing/sales agreements with us and we do not decide their [retail prices]."

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