Delhi High Court ordered an interim relief for Abbott, Pfizer and Macleod pharma firms which are facing ban by the Drug Controlling authorities in India following the March 10 notification issued to ban 344 combination drugs in India.
With the next hearing on March 21, the stay will be in operation for the three pharma companies while the government was asked to explain its position on the ban. The pharma companies have moved the court over the abrupt ban and the court has given them a relief for now.
The companies argued that the government failed to sere even a show cause notice before unilateral ban on these drugs which were in the market for over a decade. The government counsel argued that the matter is of public interest and hence there was no need to serve a show-cause notice.
After hearing both arguemnts, the High Court bench told the government to explain its position and actions behind the move to ban 344 drugs in its March 10 notification. The stay is restricted to only the three pharma companies and not across the board.
The shares of Abbott India saw a volatile situation from Rs.6,000 in January to less than Rs.5000 now.
The ban on phensedyl was welcomed by Bangladesh, which said it was being smuggled from India due to its high addiction levels. The cough syrup was already banned in Bangladesh.