Claims of discounts of 30% to 70% on medicines at several medical stores in Gorakhpur have raised questions after investigations found significant differences between purchase prices and maximum retail prices (MRP). The Food Safety and Drug Administration is examining the stores amid concerns over the possible sale of generic, counterfeit or substandard medicines in place of branded products.
Several medical stores in Gorakhpur are claiming to offer substantial discounts on medicines. Discount boards offering around 30% in Betiahata, 30% to 70% in Alhadadpur, and 25% to 30% on District Hospital Road and in Bhalotia Market have reportedly been displayed.
People associated with the pharmaceutical trade said retail margins on branded medicines generally remain within a limited range. Claims of discounts of 50% or 70% therefore raise questions, particularly when there is an unusually large difference between a medicine's purchase price and its MRP.
During inspections of pharmacies at 214 hospitals across the state, significant differences between purchase prices and MRPs have also reportedly been found. In one case, an injection purchased for Rs 74 was reported to have an MRP of Rs 4,980, raising questions over medicine pricing.
The main concern amid the heavy discounts relates to the quality of medicines. In recent times, consignments of counterfeit and substandard medicines have been seized in different cities across the state. Incidents involving the sale of counterfeit medicines brought in from other states have also increased the importance of monitoring the pharmaceutical market.
The Food Safety and Drug Administration is taking action against counterfeit, misbranded and substandard medicines. During inspections, authorities may collect samples of suspected medicines, seize stocks and initiate action against licences if violations are found.
However, offering a high discount alone does not establish that a medicine is counterfeit or substandard. The actual quality and validity of a medicine can be confirmed only after an investigation.
The distinction between branded and generic medicines is also relevant to the issue. According to sources associated with the pharmaceutical trade, there is a possibility that some stores may be supplying generic medicines instead of branded products in the name of offering discounts.
The pricing and margin structures of generic medicines can differ from those of branded medicines. Customers therefore need to be clearly informed about the medicine being supplied and its price.
According to officials, if a retailer is selling a medicine within its MRP, action cannot be taken solely because the medicine is being sold at a lower price. However, the department is preparing a confidential report on unusually large differences between purchase prices and MRPs, which may be shared with the relevant authorities.
The investigation will determine whether the heavy discounts are attributable to genuine business reasons or whether there are irregularities involving the quality, brand or pricing of medicines.
