NATCO Pharma Receives ₹4,92,25,923 NPPA Demand Notice for Alleged Drug Overcharging
NATCO Pharma Limited received a demand notice from the National Pharmaceutical Pricing Authority (NPPA) dated 12th May, 2026, directing the company to deposit ₹4,92,25,923 covering overcharge amount, penalty, and interest for alleged overcharging of 2 drugs between April 2023 and November 2023. In an updated filing on 15th May, 2026, the company disclosed a delay in its initial submission due to technical and procedural issues, while affirming no material impact on its financial or operational activities.

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NATCO Pharma Limited has disclosed the receipt of a demand notice from the National Pharmaceutical Pricing Authority (NPPA), New Delhi, dated 12th May, 2026. The disclosure was made by Ch. Venkat Ramesh, Company Secretary and Compliance Officer, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 updated on January 30, 2026.
Demand Notice Details
The demand notice was issued under para 15 of the Drugs Price Control Order, 2013 (DPCO), directing NATCO Pharma to deposit a total amount of ₹4,92,25,923, which comprises the overcharge amount, penalty, and interest. The notice alleges overcharging for 2 drugs covering the period between April 2023 to November 2023. The following table summarises the key details of the regulatory action as disclosed by the company:
| Parameter: | Details |
|---|---|
| Authority: | National Pharmaceutical Pricing Authority, New Delhi |
| Nature of Action: | Demand Notice under para 15 of Drugs Price Control Order, 2013 (DPCO) |
| Amount Demanded: | ₹4,92,25,923 (includes overcharge amount, penalty and interest) |
| Date of Demand Notice: | 12th May, 2026 |
| Date of Receipt: | 12th May, 2026 |
| Alleged Violation: | Overcharging for 2 drugs |
| Period of Alleged Overcharging: | April 2023 to November 2023 |
| Financial Impact: | No material impact on financial, operational, and other activities |
Disclosure Delay
In its updated filing dated 15th May, 2026, NATCO Pharma acknowledged a delay in the submission of the initial disclosure, attributing it to technical issues and procedural delays in the flow of information. The company confirmed that it has since complied with the disclosure requirements under SEBI (LODR) Regulations, 2015 and submitted the necessary information to the stock exchanges. NATCO Pharma also stated that it shall take necessary steps to avoid recurrence of such delays in future.
Company's Assessment of Impact
NATCO Pharma has stated that the demand notice has no material impact on the financial, operational, or other activities of the company. The disclosure was made in accordance with applicable regulatory requirements under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Historical Stock Returns for Natco Pharma
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.44% | +3.80% | +11.31% | +47.55% | +44.84% | +29.29% |
Will NATCO Pharma contest the NPPA demand notice legally, and what is the likely timeline for resolution of such regulatory disputes in India's pharmaceutical pricing framework?
Could this NPPA action signal a broader regulatory crackdown on drug overcharging across the Indian pharmaceutical industry, potentially affecting other mid-cap pharma companies?
How might repeated NPPA demand notices or escalating regulatory scrutiny impact NATCO Pharma's pricing strategy and profit margins on essential medicines going forward?


































