UP hospitals sold medicines at up to 67 times the purchase price

An inspection by the Uttar Pradesh Food Safety and Drug Administration (UPFSDA) has found a staggering gap between the procurement prices of medicines and the maximum retail prices (MRPs) printed on their packs, with the MRP of some drugs found to be several times higher — as high as 67 times – than the price at which hospitals procure them.
Officials said that they are now looking into the reasons for such large gaps.
The findings emerged from inspections of medical college and private hospital pharmacies across Uttar Pradesh.
According to the UPFSDA, it collected data from 214 hospital pharmacies and analysed the purchase price and MRP of 130 medicines identified in the data. Of these 130 medicines, 36 had MRPs more than 10 times their purchase prices, while in some cases the difference was as high as 67 times.
Several of the medicines showing wide disparities are injectable drugs used in ICUs and for serious bacterial and fungal infections.
Among the most striking examples was Polymyxin-B injection (GUFIPOL 500,000 units), which is used to treat severe bacterial infections in critically ill patients when other traditional antibiotics fail. The purchase price recorded by the pharmacy was Rs 74.09, while the MRP printed on the pack was Rs 4,980.94 — 67.23 times the purchase price. Another pack of the same medicine was purchased for Rs 90 against an MRP of Rs 4,528.10 – a difference of more than 50 times.
Terlipressin injection, used to treat severe bleeding, was purchased for Rs 56, while its MRP was Rs 3,050 — 54.46 times higher, an official said.
Similarly, Colistimethate Sodium 4.5 MIU, another antibiotic, was purchased for Rs 210 against an MRP of about Rs 9,702, while Tigecycline injection was purchased for about Rs 154, and its MRP was printed as Rs 7,110. The MRPs in both cases were about 46 times their purchase prices.
The gap was also significant in high-value medicines. Bevacizumab 400 mg, for instance, was purchased for Rs 7,541 against an MRP of Rs 69,995 — a difference of Rs 62,453.
The inspection was not limited to medicines. The UPFSDA also examined medical devices and found substantial differences between procurement prices and MRPs in some cases.
Officials said the department was examining the reasons behind the wide variation between procurement prices and MRPs, including whether the pricing and trade-margin structure allowed unusually high margins in some cases.
Officials said that in some instances, a high MRP could provide scope for discounts to be offered to patients while still leaving a substantial difference between the actual procurement cost and the billed price. They said the extent to which such pricing practices ultimately benefit patients would be examined as part of the inspection.
The UPFSDA is continuing inspections of hospital pharmacies to examine the quality, availability and pricing of medicines and medical devices. Officials said the data collected would help identify cases requiring further scrutiny and appropriate action.
Source: Indianexpress

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