Allegations Of Rs 1000 Crore Freebies By Dolo 650 Manufacturer To Doctors

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Supreme Court proceedings in India addressed claims by the Central Board of Direct Taxes (CBDT) that the manufacturer of Dolo 650 mg tablets distributed freebies worth Rs 1,000 crore to doctors. These freebies were allegedly provided to encourage prescriptions of the 650 mg paracetamol tablets, which function as an anti-inflammatory and fever reducer. The allegations were presented by senior advocate Sanjay Parikh on behalf of the Federation of Medical and Sales Representatives Association of India. Parikh noted that tablets up to 500 mg are subject to government price controls, while those above 500 mg allow manufacturers to set prices, potentially enabling higher profit margins through the distribution of freebies. The combination was described as an "irrational dose combination."

A bench led by Justice DY Chandrachud, including Justice AS Bopanna, heard the matter. Justice Chandrachud described the issue as serious, stating it was the drug prescribed during his own Covid experience. The bench directed Additional Solicitor General KM Nataraj to file a response within 10 days, with the next hearing scheduled for September 29. Parikh was granted a week thereafter for a rejoinder.

Micro Labs, the Bengaluru-based manufacturer of Dolo 650, rejected the allegations. A company spokesperson termed media reports as highly misleading and damaging to the company's reputation, the pharmaceutical industry, and doctors. Executive Vice President Jayaraj Govindaraju stated it was impossible to spend Rs 1,000 crore marketing a brand with Rs 350-360 crore in sales during the Covid year, especially as Dolo 650 falls under the National List of Essential Medicines (NLEM) price control. The company maintained supplies at a government-fixed retail price below Rs 2 per tablet despite tripling raw material costs during the pandemic. Annual sales of Dolo 650 were reported as Rs 360 crore, about 8% of total company sales.

Dolo 650 gained popularity during the Covid-19 pandemic due to its use for treating fever and pain, symptoms common with the virus. This led to a 138.42% revenue increase and approximately 290% sales growth for the company.

Key Claims and Responses

• CBDT accusation: Distribution of Rs 1,000 crore freebies to doctors for prescribing Dolo 650 mg tablets.
• Petitioner argument: Freebies ensured higher profit margins on non-price-controlled 650 mg dosage.
• Supreme Court observation: Matter deemed serious; further responses required.
• Micro Labs refutation: Claims baseless, as marketing spend could not exceed sales value; price held steady under controls.

Context from Proceedings

The case highlights regulatory differences between paracetamol dosages below and above 500 mg. Tablets up to 500 mg have regulated prices, while higher dosages do not. Sources indicate the freebies were distributed to promote the 650 mg version specifically.

Company Position

Micro Labs emphasized Dolo 650's role in providing an economical treatment option during the pandemic, allowing management of patients without costlier alternatives. No details on the nature of alleged freebies appear in the sources.

Conclusion

The sources detail an ongoing Supreme Court case involving CBDT allegations against Micro Labs for Rs 1,000 crore in freebies to doctors promoting Dolo 650 prescriptions. The company has refuted the claims, citing implausibility given sales figures and price controls. Proceedings continue with scheduled filings and hearings.

Sources

1. Pharma Company Distributed Rs 1,000 Crore Freebies To Prescribe Dolo 650 Mg Tablets, Supreme Court Told
2. Highly Misleading, Says Dolo 650 Maker Micro Labs, Rejects Giving Rs 1,000 Crore Freebies To Doctors For Prescribing Drug
3. Dolo 650 Maker Refutes CBDT's Allegation of Giving Freebies Worth Rs 1000 Cr to Doctors
4. Explained: What is the Dolo Freebies Case?
5. Dolo 650 Makers Bribed Doctors, Gave Rs 1,000 Cr Freebies
6. Pharma Company Distributed Freebies Worth Rs 1,000 Crore to Doctors for Prescribing Dolo Tablets: CBDT
7. Serious Issue: SC on Dolo 650 Makers Spending Rs 1k Cr as Freebies on Docs for Prescribing Tablet