Indian Pharmaceutical Alliance (IPA) gives clean chit to Micro Labs, Dolo maker, against a case on Rs. 1,000 crores in freebies to doctors, and states that the company is following the processes as per the Uniform Code of Pharmaceutical Marketing Practices, UCPMP, guidelines.
Last month, a PIL was filed by the Federation of Medical and Sales Representatives Association of India, stating that Dolo had invested 1,000 crores in freebies to have its anti-fever drug prescribed to patients. As per the UCPMP, IPA is required to examine the matter further especially in wake of the media reports.
In July 2022, IPA received an email regarding a complaint through NPPA with a press note from the Central Board of Direct Taxes (CBDT). The IPA Ethics Committee for Pharma Marketing Practices (ECPMP) examined the matter.
The allegation in the current complaint basis the media reports is whether the manufacturers of the paracetamol drug 'Dolo', spent over Rs 1,000 crores as freebies to doctors. Further, it is to be examined if Dolo 650 is correct dosage to be administered to patients and if the drug is under drug price control.
The company responded regarding the correctness of dosage of Dolo 650 that paracetamol 650 mg is an official formulation approved by Indian Pharmacopoeia in the year 2018. Its strength has been approved in all the treatment protocols issued by the Government of India and various state governments including ICMR during the pandemic.
Besides, it is a recommended dose across the world, and has been available in many countries such as the U.S., European countries. The company submits that 650mg strength is accepted as the appropriate dosage regimen for mild to moderate fever.
Furthermore, Micro Labs submits that Dolo 650 mg is covered in the National List of Essential Medicines and its prices to the consumer are controlled by NPPA since 2016. The price of Paracetamol 650 was Rs 1.84/-per tablet in the year 2021.
Micro Labs has stated also that it has been misrepresented that they have incurred expenses of 1000 crores in one year. The total turnover of the company is Rs 4500 crores, out of which around Rs 2500 crores is domestic sales. The overall expenses on domestic sales in the last four years (year by year on all activities) on an average is Rs 200 crores.
IPA decides in view of interaction with the management of the company and the detailed reply, it is clear Rs 1000 crore expenditure on single brand Dolo 650 on freebies in one year is not correct.
As far as the CBDT allegation regarding violation of tax provisions against the respondent company, the Committee and the Indian Pharmaceutical Alliance, association of Indian pharmaceutical companies, has neither the mandate nor the resources to investigate into such matter.
