Doctors given freebies worth ₹1,000-cr to prescribe Dolo-650, SC told

The Supreme Court on Thursday (August 18) was told that the Central Board of Direct Taxes (CBDT) has accused the pharma company manufacturing the popular Dolo tablets, an anti-inflammatory paracetamol, of distributing ₹1,000 crore worth freebies to doctors for prescribing its 650 mg tablets.

A bench of Justices DY Chandrachud and AS Bopanna was told by senior advocate Sanjay Parikh and advocate Aparna Bhat, appearing for petitioner Federation of Medical and Sales Representatives Association of India, that the market price of any tablet up to 500 mg is regulated under the price control mechanism of the government. On the other hand, the price of drugs above 500 mg can be fixed by the manufacturer. 

Also read: Dolo-650 company accused of distributing freebies worth Rs 1,000 crore

The advocates said that to ensure a higher profit margin, the company distributed freebies to doctors to prescribe Dolo 650. 

Parikh added that it is an “irrational dose combination” and said that he would like to bring more such facts to the knowledge of the court after a response is filed by the Centre.

Justice Chandrachud said: “What you are saying is music to my ears. This is exactly the drug that I had when I had COVID recently. This is a serious issue and we will look into it.”

Next hearing in September

The bench asked Additional Solicitor General KM Nataraj to file his response to the plea in 10 days and gave one week time thereafter to Parikh to file his rejoinder. It listed the matter for further hearing on September 29, 2022.

A counsel sought permission from the court to file an intervention on behalf of the pharma companies, which the court allowed, saying it would like to hear them also on the issue.

Also read: COVID effect |India popped 350 crore Dolo650 pills worth ₹567 crore

On March 11, the top court agreed to examine a plea seeking direction to the Centre for formulating a Uniform Code of Pharmaceutical Marketing Practices to curb unethical practices of pharma companies and ensure an effective monitoring mechanism, transparency, accountability as well as consequences for violations.

The top court had said that it wanted to know what the government had to say on this issue.

Parikh had said that this is an important issue in public interest and there is a recent SC judgment which said that bribe-giving and bribe-taking both are prohibited.

He had submitted that pharmaceutical companies are saying that they are not liable as the bribe-takers are the doctors and in foreign countries, they have legislation to curb these unethical marketing practices.

Parikh said that the government should look into it and the code should be made statutory in nature as “we all know what happened with Remdesivir injections and other drugs of those combinations”.

The top court had then asked the petitioner why a representation couldn’t be made to the government, to which Parikh said they had already done it.

The plea filed through advocate Aparna Bhat sought direction that till an effective law is enacted as prayed, the court may lay down the guidelines to control and regulate unethical marketing practices by pharmaceutical companies.

The plea added that the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations of 2002 prescribe a code of conduct for doctors in their relationship with the pharmaceutical and allied health sector industry, and prohibit acceptance of gifts and entertainment, travel facilities, hospitality, cash or monetary grants by medical practitioners from pharmaceutical companies.

With agency inputs