I have posted on how Ranbaxy and Johnson and Johnson sell at a higher price/spurious products and how Johnson and Johnson is relaunching the same product that was whose licence was canceled for using a Carcinogen in the formula.
That the drug companies over price is well-known.
Some Retailers allow a discount of 20% on MRP, while periodically going on strike for increased margins.
On checking up with a Retailer well known to% discount , in some products, they make at least 30 % Margin!
Imagine the profit the Drug Companies are making!
The net profit of the Drug Companies are making is very high after paying out millions of Dollars paid out to doctors for prescribing their products!
Nine drug makers, including Ranbaxy, Dr Reddy’s Labs, Glenmark, Cipla and Cadila Health, are likely to face a hefty penalty from the National Pharmaceutical Pricing Authority (NPPA) over allegedly selling anti-asthma drug Doxofylline without prior price approval. The move comes in the wake of a recent Supreme Court order against the industry that brought the widely prescribed medicine under price control.
The total penalty on the nine firms is estimated to be Rs 2,500 crore because the fine will be calculated in retrospect from 2009, when the price of the drug was fixed by NPPA.
According to official sources, NPPA has already sent notices to four drug companies — Ranbaxy, Cipla, Cadila and Glenmark — for allegedly overcharging on sale of their individual brands containing Doxofylline.