Massive markup on high-cost drugs: Raids to continue, Karnataka writes to Centre

Recent investigations have revealed that pharmaceutical companies are supplying medicines to hospitals at heavily discounted institutional (landing) prices, while patients are being billed at or near the printed MRP. | Photo Credit: File photo

The Karnataka government has flagged the disparity between the institutional landing costs and the Maximum Retail Prices (MRP) of high-value medicines, cancer drugs, antibiotics and hospital consumables supplied to hospitals across the State.

The department has raised the issue with the Union Ministry of Health and Family Welfare and the National Pharmaceutical Pricing Authority (NPPA). Health and Family Welfare Minister U.T. Khader, in a letter dated September 23, wrote to the Union Health Minister seeking action.

Massive markup

Recent investigations by the Karnataka Food Safety and Drug Administration (FSDA) have revealed that pharmaceutical companies are supplying medicines to hospitals at heavily discounted institutional (landing) prices, while patients are being billed at or near the printed MRP, resulting in markups ranging from 10 times to over 52 times the actual procurement cost.

During inspections, the FSDA found extreme pricing anomalies in 253 drugs. For the cancer drug Cytax 100 mg, the landing cost was ₹342, while the MRP was ₹3,836, reflecting a markup of 11.2 times.

In the case of Gufipol, manufactured by Criticare, the markup was as high as 52.6 times, or 5,165%.