Drug companies will be able to re-label their medicines at designated locations other than their manufacturing units, a recent notification from the Finance Ministry said.

This exemption would be allowed only for companies revising their medicine prices, in line with the ceiling price notified by the Department of Pharmaceuticals, it added.

These companies would also not have to pay an additional excise duty, the notification said, though it was not clear if companies were given another 30 to 45 days to undertake the re-labelling of medicines.

An industry expert said that the Finance Ministry notification added to the confusion, as the Department of Pharmaceuticals was looking at allowing companies to sell with the old prices, provided they supplied the revised price list to the chemist.

Drug companies were to change their labels to the new prices, 45 days from when the revised price list was notified by the National Pharmaceutical Pricing Authority – the implementing authority of the Drug Price Control Order (2013).

Companies and drug associations have approached the Courts individually seeking clarity on the implementation of the order, as the 45 day-deadline on the first list of 151 medicines whose prices were revised as part of the new drug policy and the DPCO, lapsed on Monday.

Companies maintain that medicines manufactured after the date of the revised price notification would show the changed price. However, it was not be possible for companies to recall existing stock supplied into the distribution channels, and change their prices, they said.

And as confusion prevails in the market, consumers are being deprived of medicines with the revised and reduced prices.

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