HYDERABAD: In a first, the US Congress sent a missive to 14 pharmaceutical companies including 3 Indian thereby initiating a probe into staggering price rise of generic drugs.
The three India drug majors include the country’s largest pharma company by sales Sun Pharmaceuticals Ltd, India’s second largest drug major by volume Dr Reddy’s Laboratories Ltd and Zydus Pharmaceuticals Ltd, part of Zydus Cadilla.
According to the letter, prices of some of the generic drugs in the US market rose as high as 8,281 per cent between October 2013 and April 2014. For instance, average price of Albuterol Sulfate used to treat asthma and other lung conditions (100 pills) rose from $11 in October 2013 to $434 in April 2014. Similarly, antibiotic Doxycycline Hyclate, shot up from $20 (500 tablets) to $1,849 during the same period.
“We are conducting an investigation into the recent staggering price increases for generic drugs used to treat everything from common medical conditions to life-threatening illnesses,” said the letters to 14 pharmaceutical companies dated October 2.
Sun Pharma was asked details about three of its drugs - Divalproex Sodium ER, Doxycycline Hyclate and Albuterol sulfate - used to prevent migranes and treat certain types of seizures to treat a variety of infections and to treat asthma and other lung conditions respectively.
As per the Healthcare Supply Chain Association (HSCA), the average prices rose 736 per cent for Diavalporex Sodium ER, 8,281 per cent for Doxycycline Hyclate and 4,014 per cent for Albuterol sulfate between October 2013 and April 2014.
Similarly, respective letters to Dr Reddy’s and Zydus Pharma sought details of rising prices of two drugs - Divalproex Sodium ER and Pravastatin Sodium, used to treat high cholesterol. As per HSCA, the average prices rose 736 per cent for Diavalporex Sodium ER, and 573 per cent for Pravastatin Sodium.
Companies have revert with total gross revenue from these drugs, quantities, purchasers, prices, profit projections by October 23. The Congress also sought a description and valuation of specific financial and non-financial factors contributing to price rise and prices of these drugs in all foreign countries including price information of countries paying the highest and lowest price.