The National Pharmaceutical Pricing Authority (NPPA) has issued a demand notice to Torrent Pharmaceuticals Limited for launching a new drug without prior price approval, imposing a penalty of ₹6,32,689. The notice, dated October 17, 2024, was issued under paragraph 15 of the Drug Price Control Order 2013.
The shares of Torrent Pharmaceuticals Limited were trading at ₹3,446 up by ₹49.35 or 1.45 per cent on the NSE towards the closing bell.
The Ahmedabad-based pharmaceutical company disclosed this development in a regulatory filing to the stock exchanges on October 18. According to the filing, the violation pertains to the launch of a new drug for which the company obtained price approval after the product was already in the market.
Torrent Pharmaceuticals stated that the order would not have any material financial impact on the company’s operations. The notice was issued by the NPPA Director from their office at YMCA Cultural Center Building in New Delhi.