Senior advocate Sanjay Parikh, representing the NGO Federation of Medical Sales Representative Association of India, told the Supreme Court that the Central Board of Direct Taxes (CBDT) has alleged about Dolo-650 manufacturers.
Parikh also brought to the notice of the court that the market price of any tablet up to 500mg is regulated under the price control mechanism of the government, but the price of the drug above 500mg can be decided by the manufacturer pharma company.
To ensure higher profit margins, Dolo-650 manufacturers distributed free gifts to doctors for prescribing medicines, he said.
The apex court bench called it “a serious issue” and asked Additional Advocate General KM Natraj, representing the Centre, to file a reply within 10 days.
The court was hearing a PIL seeking a direction to hold pharma companies accountable for giving free gifts to doctors as an incentive to prescribe their medicines.
The petition claims that there are copious examples showing how corruption in the pharmaceutical sector jeopardizes positive health outcomes and endangers the health of patients.
It also demanded that a statutory code of ethical marketing be instituted for the pharmaceutical industry with penal consequences to curb such practices in order to enforce the fundamental right to health of the people of India. It also said that such unethical practices continue due to the voluntary nature of the existing code.
The court listed the matter for further hearing on September 29, 2022.
A lawyer sought the court’s permission to file an intervention on behalf of the pharma companies, which was allowed by the court saying it would like to hear them on the issue as well.
(with agency input)