Lucknow – A fresh audit carried out by the Uttar Pradesh Food Safety and Drug Administration (FSDA) has highlighted a pronounced mismatch between the amounts hospitals actually pay for drugs and the maximum retail prices (MRP) displayed on the packaging. In many cases, the printed MRP is dozens of times higher than the price paid by hospital pharmacies.
Scope of the investigation
The study examined procurement records from 214 pharmacies attached to medical colleges and private hospitals. Out of the 130 medicines scrutinised, 36 exhibited an MRP that was more than ten‑fold the purchase price, with the most extreme example showing an MRP roughly 67 times the cost to the hospital.
Polymyxin‑B injection tops the list
The largest disparity involved a Polymyxin‑B injection, a drug reserved for severe bacterial infections. Hospitals acquired the vial for ₹74.09, yet the label bears an MRP of ₹4,980.94 – a difference of almost 67 ×.
Wide variations in high‑impact injectable medicines
Other critical injectables displayed similarly stark gaps. A medication used for advanced liver disease was bought for about ₹56, but the MRP listed was ₹3,050. Comparable mismatches were observed in drugs targeting serious bacterial and fungal infections.
Meropenem and Caspofungin price spreads
For Meropenem 1 g, a cornerstone therapy for resistant bacterial infections, the MRP varied between roughly 5.3 and 10 times the procurement price, depending on the brand.
Caspofungin 70 mg, an antifungal agent, showed the widest gap in this group. One formulation cost the hospital ₹800 but carried an MRP of ₹21,230 (about 26.5 ×). Another batch was purchased for ₹897.75 and labeled at ₹19,892.
Cancer and life‑saving drugs also under scrutiny
The audit flagged several oncology and other life‑saving medicines with inflated MRPs. While higher printed prices can give manufacturers leeway for discounts, the findings raise questions about how these figures are set and communicated to patients.
Medical devices mirror the trend
Price inflation was not limited to pharmaceuticals. A three‑way stopcock was bought for just ₹6.40 yet bore an MRP of ₹163. Another piece of equipment cost the hospital ₹20.95 but displayed a retail label of ₹500.
Limited availability squeezes patient choice
When a drug is stocked only in a single hospital pharmacy—or is scarce in the open market—patients have little ability to compare prices. Consequently, they may be forced to purchase the medication at the inflated hospital‑pharmacy rate, potentially driving up overall treatment costs.
Implications for transparency and regulation
The FSDA’s findings have intensified calls for greater pricing transparency, stricter procurement oversight, and continuous monitoring of MRPs for both medicines and medical consumables. Better insight into the relationship between purchase costs and retail prices could help curb excessive mark‑ups and protect patients from undue financial strain.
