Massive markup on expensive drugs: Raids continue, writes Karnataka Center

Recent investigations have revealed that pharmaceutical companies supply drugs to hospitals at heavily discounted institutional (landing) prices, while patients are charged at or near the printed MRP. | Photo credit: File photo

The Karnataka government has highlighted the disparity between institutional landing costs and maximum retail prices (MRP) of high-value drugs, cancer drugs, antibiotics and hospital consumables supplied to hospitals across the state.

The department raised the issue with the Union Ministry of Health and Welfare and the National Medicines Pricing Authority (NPPA). Health and Family Welfare Minister UT Khader, in a letter dated September 23, wrote to the Union Health Minister and sought action.

Massive label

Recent investigations by the Karnataka Food Safety and Drug Administration (FSDA) have revealed that pharmaceutical companies supply drugs to hospitals at heavily discounted institutional (landing) prices, while patients are charged at or close to the printed MRP, resulting in markups ranging from 10 times to more than 52 times the actual procurement cost.

The FSDA found extreme price anomalies in 253 medicines during inspections. Cancer drug Cytax 100 mg had a landing cost of ₹ 342, while MRP was ₹ 3,836, which equates to an 11.2 times markup.

In the case of Gufipol, produced by Criticare, the markup was up to 52.6 times, or 5165%.

Drug/Consumable Landing Cost (₹)MRP (₹) Top-up Gufipol (Criticare)864.52852.6 times Guficycline-50 Injection (GUFI)1607.11044.4 times Terlitida (AEQU)1184.41637.4 times 01taxocare 21.61721.6 times Canmab 440 mg6.60057.4578.7 times Bevatas 400 mg injection5.85062.69010.7 times Cytax 100 mg (cancer drug)3423.83611.2 times Adult Nebulizer Mask25093IV44. Kit 14.7529520 times Polysafety PRO IV Cannula33.2154816.5 times

11 point letter

The Karnataka government has asked the Center to mandate institutional price transparency by requiring hospitals to include both input costs and MRP on patient bills, expand the list of drugs under price control under the Drug Price Control Ordinance (DPCO), and regulate trade margins on essential drugs and high-value consumables.

The state also sought the establishment of an interdepartmental expert group, a national data study, and amendments to the 2013 Drug Control Ordinance.

Other demands include rationalization of trade margins, mandatory MRP cost transparency, expansion of the National List of Essential Medicines (NLEM) and creation of an audit and enforcement mechanism.

Continue driving

Another special verification drive was conducted on 25th and 26th September 2026 at various wholesale premises, hospitals and other facilities in Bengaluru and district headquarters across Karnataka. According to FSDA, preliminary observations indicate substantial differences between landed cost, MRP and actual selling price of some high-cost drugs, medical devices and hospital consumables. The controls covered more than 768 consumer items and 189 expensive medicines. The central government will be informed about the findings, FSDA said in a statement.

According to FSDA, the special verification exercise will continue gradually. In the next phase, enforcement and verification activities will focus on, among others, antiretroviral drugs, next-generation and critical antibiotics, medical devices and hospital consumables with significant financial implications for patients.

Khader exposes SuMi

Health and Family Welfare Minister UT Khader on Thursday unveiled the new mascot of the Karnataka State AIDS Control Society.

The SuMi mascot, short for Suraksha Mitra, was chosen from around 1,500 entries. The winning mascot was designed by Navya of Athena College of Nursing, Mangaluru.

The competition was organized by the AIDS Control Society to raise awareness about HIV/AIDS. Held in all districts for persons over 16 years of age.

Published – 1 October 2026 18:50 IST