Medicine freebies raise questions over trade margins and patient affordability

The Karnataka State Registered Pharmacists Association (KSRPA) has reportedly urged the State Food and Drug Administration to examine pharmaceutical companies’ “Buy 1, Get 1 Free” schemes and clarify how free units should be accounted for when calculating the actual purchase cost of medicines. It was questioned whether the cost of free units should be spread across the total quantity purchased to calculate a lower per-unit cost, or whether the additional medicines should be supplied to patients free of charge. Hospitals and bulk purchasers may retain the financial benefit instead of passing the savings on to patients. The association also flagged large gaps between retailers’ purchase prices and printed MRPs, calling for stricter scrutiny of medicine pricing under the Drugs (Prices Control) Order, 2013.