Micro Labs Dolo-650 Scam: What Causes Manufacturer Problems?

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Micro Labs Dolo-650 Scam: What Causes Manufacturer Problems?

Paracetamol pill Dolo-650 may be unknown to relatively few people in India. The pill, often known as the “magic pill”, has been used frequently to treat fever, particularly during the Covid-19 outbreak. Since its launch in March 2020, it has earned the nickname “Covid – Pandemic’s Favorite Snack” and has sold over 350 billion pills, generating sales of INR 500 crore.

The renowned drug, along with generic drugs and drugs for cardiology, diabetology, anti-infectives and ophthalmology, are produced by Bangalore-based pharmaceutical company Micro Labs Ltd. The late Mr. GC Surana founded Micro Labs, a private company which is now run by Mr. Dilip Surana and Mr. Anand Surana. However, a new problem has invaded this 49-year-old Indian multinational.

Supposed Dolo-650 scam

The manufacturer of the Dolo-650, Micro Labs, was under investigation for tax evasion and evasion earlier this year when the income tax department filed a complaint against it.

In the most recent development, the Central Board of Direct Taxation (CBDT) has accused the producers of Dolo-650 of giving gifts totaling INR 1,000 crore to doctors in exchange for their prescriptions for this pill. Advocate Sanjay Parikh, the Advocate for the Federation of Medical and Commercial Representatives of India, drew attention to this. It is “an unreasonable dosage combination”, according to lawyer Parikh, to ensure that the company makes more money.

In addition, he submitted a response in which he asked the court to be informed of additional information. The court granted his request and the judges gave him a week to present all the evidence. When Supreme Court benches DY Chandrachud and AS Bopanna heard the case, Justice DY Chandrachud called it a “serious matter”.

“Your lyrics are not music to my ears,” he said. I took a similar drug lately when I had Covid. We will study this important problem.

The matter was pursued for a hearing on September 29, 2022, and Additional Solicitor General KM Nataraj was instructed to respond in writing within 10 days.

Micro Labs Response to Complaints

A company spokeswoman responded by saying the number referenced represents all sales and marketing expenses paid for the company’s Indian operations over the previous five years. He went on to say that Micro Labs has maintained a steady supply during the outbreak while maintaining pricing in line with government regulations. Despite rising commodity prices, this was the case. Dolo-650, a cost-effective alternative, has enabled doctors across the country to successfully treat covid sufferers while sparing the general population from expensive pharmaceuticals.

A representative of the company said, “To think of giving gifts worth thousands of crores is therefore very absurd. Doctors have recommended the prescription because of its high quality, its effectiveness in rapidly reducing fever, and the confidence that has been built over the past three decades. We work closely with the authorities to give them all the facts and justifications they want for a fair decision.

paracetamol |  dolo: how dolo turned into a hit with the right dose of perception and prescription

In an interview, Mr. Dilip Surana, President and CEO of Micro Labs, also shared his thoughts. He said that Dolo-650 was only created after extensive consultations with medical professionals and the realization that there was a gap in the treatment of fever since the relief offered by paracetamol 500 mg was insufficient. The drug was introduced in 1993 to fill the aforementioned gap. He went on to say that the drug had never been actively promoted to the public and that its surprising rise in notoriety during the epidemic was due to this. He added, however, that since the launch of the drug, Dolo 650 has consistently been the most prescribed drug in its category in India.

By responding to public concerns through posters posted at all vaccination centers across the country, Surana said, Dolo-650 helped market the vaccine campaign. Following vaccination, doctors also recommended the pill for symptoms of fever or body aches. As a result, the brand gained widespread fame.

The effects of the scam

baseless, incorrect': dolo 650 maker denies giving rs1000 crore in gifts to doctors

The Supreme Court has been urged by an NGO to hold drugmakers responsible for encouraging doctors to prescribe their products.

The Supreme Court agreed in March to consider a motion asking that the federal government be guided in drafting a uniform code of pharmaceutical marketing practices. This would put an end to unethical behavior by pharmaceutical companies, ensure an effective oversight system, promote accountability and transparency, and provide for tough penalties for breaches.

In the Supreme Court, Barrister Parikh made it clear that he has been pursuing this issue with the government since 2009 and in the meantime the government has been urging the court to establish certain rules. The argument advanced by lawyer Aparna Bhat was that a code of conduct for doctors should be prescribed by the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations 2002 to control their interactions with pharmaceutical companies and the paramedical industry.

It should expressly prohibit healthcare professionals from accepting entertainment, travel, entertainment, gifts, money or other financial gifts. The argument went on to say that although they are called “sales promotions”, they are perks that are given to doctors in exchange for increased drug sales. This unethical drug advertising can harm a doctor’s prescription and put lives at risk.

Conclusion

not possible: dolo 650 maker micro labs denies all claims of rs 1000 crore being worth freebies

Besides Dolo 650, Micro Labs manufactures and markets a variety of pharmaceutical products, including APIs (active pharmaceutical ingredients). There are several such as Lubrex, Diapride, Vildapride, Arbitel and Avas. However, the company recently came under tax investigation for tax evasion and evasion. It will be interesting to see how this accusation against Micro Labs, the company that made the Dolo-650, evolves.

FAQs

What is Dolo-650 paracetamol used for?

A common drug used to treat fever, back pain, colds, muscle pain, sore throat, and nerve pain is called Dolo-650.

Why is Micro Labs, the maker of the Dolo-650, having trouble?

The manufacturer of the Dolo-650, Micro Labs, was being investigated for income tax violations after the Income Tax Department accused it of dodging and cheating on taxes. The makers of Dolo-650 are accused of offering doctors gifts worth INR 1,000 crore in exchange for writing prescriptions for the drug.

Which company manufactures the Dolo-650?

Dolo-650 is manufactured by the Indian pharmaceutical company Micro Labs Limited.

Article reviewed and published by Gauri Malhotra.

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