NDTV Impact: Maharashtra Minister Calls 2,800% Pharma Profits 'Blunder', Orders Probe

Taking note of NDTV reports on pricing patterns of medical devices sold in retail and trade markets, and unchecked profiteering, the Maharashtra government has promised a high-level probe.

Calling up to 2800% profit margins on common medical devices "a blunder", Maharashtra Revenue Minister Chandrashekhar Bawankule has assured a detailed investigation.

"This is not just negligence. This is a blunder. We will take NDTV campaign forward and initiate a major investigation," the Minister told NDTV.

The minister added that such a huge margin between the cost and price to patients is "a massive betrayal". "This is playing with the lives of patients."

He also promised that he will raise this issue at the next Cabinet meet of the state government and also take it up with the Central government.

NDTV had reported on Wednesday the findings of an extensive market survey conducted by the Maharashtra State Price Monitoring Resource Unit (MSPMRU) under the state Food and Drugs Administration (FDA) to assess pricing patterns of medical devices sold in retail and trade markets. The findings point to what officials describe as unchecked trade-level profiteering.

The survey found significant disparities between procurement costs and printed maximum retail prices (MRPs) across several categories of medical devices used in inpatient departments (IPDs).

The Maharashtra survey examined IV sets, syringes, nebuliser oxygen mask, and miscellaneous devices and found mark-ups of up to 29 times the procurement cost on essential inpatient medical devices.

Read | Exclusive: After Survey Flags 2,800% Pharma Profit, Tukaram Mundhe Calls For Transparency

For example, The 'Medifusion IV set' by Mediplus Haryana had a purchase price of Rs 11.05 and an MRP of Rs 325 -- adding up to profits to the tune of 2,841 per cent. Another manufacturer, Lyvofusion, showed margins of 2,091 per cent.

A standard 10 ml syringe manufactured by Lifelong Meditech in Delhi was being sold for Rs 57.2 against a purchase price of Rs 6.75.

An adult nebuliser mask kit manufactured by Vinjoh Healthcare is priced at Rs 45 but was sold to patients for Rs 652.

Defining the price hike as "irrational and unjustified", Maharashtra FDA Commissioner Tukaram Mundhe has urged the Centre to review the pricing of commonly used hospital consumables.

Mundhe has written to the National Pharma Pricing Authority under the Department of Pharmaceuticals, asking for intervention.

While pharma or any other industry will not work to incur losses, he said there needs to be transparency. "A trade margin of 2800 per cent is by any terms not acceptable, either as a consumer or as a hospital or as a regulator," Mundhe told NDTV.