Karnataka FDA flags huge price markups by 254 drug companies

Bengaluru: The Karnataka Food and Drug Administration (FDA) has identified what it described as a major pricing irregularity involving 254 pharmaceutical companies, alleging that medicines, medical devices and consumables supplied to hospitals were being sold to patients at prices far higher than their procurement or landing costs.

The FDA has prepared a detailed list of the companies and submitted the pricing information to the National Pharmaceutical Pricing Authority (NPPA), seeking urgent intervention to regulate what it considers excessive margins and protect patients from financial exploitation.

Karnataka FDA Commissioner K. Srinivas has urged the central pricing authority to examine the issue under the provisions of the Drugs (Prices Control) Order, 2013. The state department has also sought a ceiling on trade margins for medicines, medical devices and consumables sold through hospitals.

The investigation reportedly found significant differences between the cost at which certain products were procured or supplied and the maximum retail price displayed for patients. The department has raised concerns that such pricing practices could place a heavy financial burden on patients, particularly those undergoing prolonged or expensive treatment.

Among the examples cited by the FDA, a medicine purchased for Rs 86 was reportedly sold with an MRP of Rs 4,528, representing a difference of more than 50 times. Another product procured for Rs 160 had an MRP of Rs 7,110, according to the department.

The FDA also cited several injectable medicines where the difference between landing cost and MRP was particularly large. Cytax 100mg, a cancer medicine, was reported to have a landing cost of Rs 342 against an MRP of Rs 3,836. Nucain 300mcg reportedly had a landing cost of Rs 112 and an MRP of Rs 1,239.

Similarly, the landing cost of Bivatas 400mg injection was cited as Rs 5,850, while its MRP was reportedly fixed at Rs 62,690. Cosate 3 MIU injection was another product cited, with a landing cost of Rs 340 against an MRP of Rs 3,699.

In his communication to the NPPA, Srinivas sought urgent action to bring excessive pricing under control. The FDA has called for appropriate price fixation based on manufacturing or landing costs and a reasonable margin.

The state department has also emphasised the need for stronger monitoring of medicines, medical devices and hospital consumables to ensure that patients are not subjected to disproportionate charges. The matter is now before the central pricing authority for examination and further regulatory action.

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Coovercolly Indresh

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