The vast difference in the prices of drugs procured by the government agencies and maximum retail prices of the same drugs when sold through retail pharmacies exposes the huge profiteering indulged in by pharmaceutical companies. The companies do make a reasonable profit when they offer to the government agencies against tenders but at the retail level the margins charged by them are alarmingly high.
For a large number of life-saving medicines, especially for treating cancer, heart ailments, kidney diseases, etc, some of the companies are charging more than 1000 per cent of the procurement prices.
This huge difference in procurement price and MRP was revealed through an Right to Information (RTI) in Kerala by an NGO named Janapaksham. In the RTI it was revealed that the Kerala Medical Supply Corporation Ltd. (KMSCL), a Kerala government undertaking which is functioning under the state ministry of health, is procuring drugs from a large number of drug companies at a price which is much lesser than the MRP.
For instance, the cancer drug Amifostin injection is procured by the KMSCL at Rs 430.00 while the same injection is available at the private medical stores at a whopping Rs 4225, an increase of almost 1000 per cent. In the same category, Inj. Paclitaxel with Codan Set of 16.7 ML is procured at Rs 575 while its MRP in the medical stores is Rs 5500, again a difference of almost 1000 per cent. Likewise, Inj. Paclitaxel with Codan Set 43.34 ML is procured by the KMSCL at Rs 1226 against its MRP of Rs 10850. Another cancer drug Inj. Paclitaxel 5 ML is sold by the private retailers at Rs 2100 while the KMSCL is procuring the same drug at Rs 239.
Same is the case with the medicines of heart diseases as the companies are literally exploiting the public. While KMSCL is procuring the heart disease drug Streptokinase Inj. IP at Rs 538, the MRP of the same drug is Rs 2500. Similarly, a strip of Clopidogrel Tab.( 75 mg) is procured at a price of Rs 71.90, whereas the same drug is sold at a MRP of Rs. 505 in medical stores. Likewise, the procurement price of Enallapril Maleate Tab – 2.5 mg is Rs 6.40 while its MRP is a whopping Rs 154.66. Another heart disease drug Dubutamine HCL Inj is procured by the KMSCL for Rs 19.35 against the MRP of Rs 320.
In the case of drugs for kidney diseases also the story is the same. While KMSCL is procuring the drug Sprionolactone for Rs 48.40, the same is being sold at the retail shops at Rs 200. Likewise, the procurement price of Spironolactone is Rs 345 while its MRP is Rs 789. Another kidney disease drug Frusemide Tab is procured at Rs 11.23 while the MRP is Rs 39.
During 2008-09 and 2009-10, KMSCL has purchased medicines from the drug companies for around Rs 300 crore, but if the patients had bought these medicines from the retail stores, it should have cost not less than Rs 2000 crore, Janapaksham Convenor Benny Joseph said.
Bafna Pharma, Hindustan Latex Ltd, Strimed Surgicals India Pvt. Ltd, Tulip Diagnostics, GlaxoSmithkline Pharamceuticals, Sangrose Laboratories, Goldwin Medicare, Biocon Ltd, Alfred Berg & Co., I.R. Surgicals, Bharat Bio-Tech, etc are some of the total 143 companies which supply medicines to the KMSCL.