Pharma Freebies, Free from Regulation

Unethical marketing practices by the pharmaceutical industry are a long-standing headache, which have been further highlighted by the ­recent “Dolo” episode. The Supreme Court expressed its concern over the unethical marketing of the painkiller “Dolo 650” (paracetamol 650 milligram [mg]), while recently hearing a public interest litigation (PIL) that concerns the regulation of drug promotion by the pharmaceutical industry. Use of this drug prescribed for fever and pain has massively increased during the COVID-19 pandemic; annual sales of Dolo 650 nearly doubled in 2021, compared to pre-epidemic sales in 2019 (Firstpost 2022). Dolo 650 is considered the most prescribed medicine during the pandemic, reaping sales worth over `500 crore since March 2020, being nicknamed the “COVID-19 pandemic’s favo­urite snack” (Perappadan 2022).

Along with the raised demand due to COVID-19, the major jump in sales for one particular brand has been linked with the company distributing freebies to medical professionals (travel expenses, gifts, etc) in exchange for the promotion of their medicines. In July 2022, the Central Board of Direct Taxes (CBDT) had raided 36 premises of the pharma group that manufactures Dolo, revea­ling evidence of huge unallowable exp­enses under the head “sales and promotion.” It is alleged that the company had distributed freebies worth `1,000 crore to doctors in exchange for promoting its various medical products, altho­ugh this allegation has subsequently been denied by the company.