• Wed. Sep 28th, 2022

Dolo 650 maker Micro Labs rejects claims of Rs 1,000 cr being gifts to doctors

ByRandall B. Phelps

Aug 21, 2022

Last month, the income tax department raided the pharmaceutical company’s premises for alleged tax evasion.

Dolo tablet makers are said to have distributed freebies worth around Rs 1,000 crore to doctors. (Representative image via Unsplash)

Pharmaceutical company Micro Labs has branded allegations that it gave gifts worth Rs 1,000 crore to doctors to promote its anti-inflammatory drug Dolo 650 as baseless.

On Thursday, the Supreme Court was told by an NGO that the Central Direct Tax Board had accused the Bengaluru-based pharmaceutical company of handing out gifts of Rs 1,000 crore to doctors for prescribing its 650mg tablets.

In a statement, a spokesperson for Micro Labs said that in some of the recent media reports, it was falsely and maliciously alleged that the company distributed gifts worth Rs 1,000 crore to promote Dolo 650 in a year.

“This is very misleading and affects the reputation of Micro Labs, the pharmaceutical industry and doctors,” the spokesperson added.

Annual sales of Dolo 650 were Rs 360 crores, or about 8% of the company’s sales.

Despite the tripling of the cost of raw materials in the time of COVID, Micro Labs has maintained uninterrupted supplies without any price changes in line with the government set retail price of less than Rs 2 per tablet, the spokesperson noted. .

With a cost-effective option like Dolo 650, doctors across the country have been able to manage most of their patients during the pandemic without the need for expensive antivirals and other medications, the spokesperson said.

“To think of handing out gifts worth thousands of crores is therefore very absurd. The company would like to clarify that the amount referred to relates to the total sales and marketing expenses incurred by the company for all of its operations in India over the past five years and spent on all of his wallet,” the spokesperson added.

The drug was prescribed by doctors because of its quality, effective and fast fever relief and the trust built over three decades, the spokesperson said.

“We are cooperating fully with the authorities to provide all information and explanations necessary for their consideration,” the spokesperson added.

Last month, the income tax department raided the pharmaceutical company’s premises for alleged tax evasion.

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First published on: 2022-08-21 at 18:57:15

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