Common antiseptic liquid Dettol, made by the Indian subsidiary of British consumer goods major Reckitt Benckiser, may soon see an increase in retail price. The department of pharmaceuticals (DoP) has ordered drug price regulator National Pharmaceutical Pricing Authority (NPPA) to review its ceiling price for Dettol.
Reckitt Benckiser had in 2011 challenged the retail price fixed by the NPPA before the DoP, which is the NPPA?s administrative head, saying the regulator’s pricing calculation failed to recognise the rise in raw material costs, despite being pointed out by the company in its price revision application.
?The NPPA should consider the complete information provided by the petitioner (Reckitt Benckiser) and arrive at the correct price,? said the DoP order dated August 1. ?The NPPA treated Dettol as an elixir and have allowed the norms for conversion of elixir. However, after going through the definition, it has been observed that Dettol may be considered an emulsion. Therefore, claim of the company for using norms of conversion for emulsion may be granted,? it added.
?The NPPA should also consider the existing norms for flat transparent bottle allowed to other companies as per the provisions of their internal guidelines or if no such price exists, NPPA should consider the cost details provided by the company,? the order added.
Dettol is the leader in the antiseptic liquids market in India with a share of 86%, followed by Savlon from Johnson & Johnson at 8%. According to industry experts, the antiseptic liquids market in India is pegged at Rs 200 crore.
In August 2010, Reckitt had applied for price revision for liquid Dettol’s traditional packs as well as the new pack sizes of 60 ml, 110 ml and 210 ml. The NPPA, however, ignored Reckitt?s plea for new packs and provided a marginal price increase, much lower than what Reckitt had demanded on the 50 ml, 100 ml, 200 ml, 500 ml and 5-litre bottles.
Though the NPPA had not explicitly barred the use of the ?unapproved? packs of Dettol, the authority has conveyed to Reckitt that since there was no prescription dosage for use of Dettol, there is no justification for manufacturing and marketing it in pack sizes of 60 ml, 110 ml and 120 ml.