Drug overpricing: NAB makes highest recovery through plea bargain in Pindi
NAB Rawalpindi region on Wednesday claimed that it is the highest ever recovery under the plea bargain plan
NAB Rawalpindi region on Wednesday claimed that it is the highest ever recovery under the plea bargain plan. PHOTO: FILE
ISLAMABAD:
The National Accountability Bureau has recovered Rs385.1 million from a pharmaceutical company accused of overpricing of some medicines in connivance with the officials of the Ministry of National Regulations and Health Services.
NAB Rawalpindi region on Wednesday claimed that it is the highest ever recovery under the plea bargain plan.
Medicines’ price hike
Earlier, NAB had received a complaint alleging that officials of the health ministry and others were involved in the illegal increase in prices of drugs through Drugs Pricing Committee (DPC) meetings held on October 9, 2012, a subcommittee meeting on November 19, 2012 and on January 22, 2013.
During investigations, it was revealed that some pharmaceutical companies had been given undue financial benefits by members of the committee through an exhorbitant increase in prices of their drugs.
“The management of RG Pharmaceutical aided, assisted, abetted, and in conspiracy with the DPC members got unjustified price increase of their drug Venofer injection on the basis of import invoice at the rate of 3 euros per ampoule whereas actually the company was importing its product at the rate of 2.5 Swiss francs per ampoule at the relevant time period,” reads a statement issued by the bureau.
In the same way, the management of the company also got an unjustified price increase of their drug Maltofer syrup through a toll manufacturing agreement on the basis of that import cost of raw material of active ingredient (iron) at Rs46.272 per 120ml and 94.80 Swiss francs per kg.
The investigation also revealed that the cost of the active ingredient was 49.3 Swiss francs per kg at that time which came to be approximately Rs24 per 120ml and not Rs46.272 per 120ml.
Investigations established that the management of the company derived wrongful gains of Rs385.11 million as a result of unjustified price increase obtained through fraud and misrepresentation.
‘Imported medicines have no alternatives in Pakistan’
Later, company directors Tariq Haider and Mian Khalid Mehmood submitted an application for a plea bargain.
The NAB chairman accepted the plea bargain of Rs385.11 million which were approved by the Accountability Court Islamabad.
The prices of the drugs will be reverted to their 2012 levels by RG Pharmaceutical in light of the deal. Moreover, Drugs Regulatory Authority is being issued instructions to implement the order by not allowing the company to sell its above drugs beyond 2012 prices.
Published in The Express Tribune, June 16th, 2016.
The National Accountability Bureau has recovered Rs385.1 million from a pharmaceutical company accused of overpricing of some medicines in connivance with the officials of the Ministry of National Regulations and Health Services.
NAB Rawalpindi region on Wednesday claimed that it is the highest ever recovery under the plea bargain plan.
Medicines’ price hike
Earlier, NAB had received a complaint alleging that officials of the health ministry and others were involved in the illegal increase in prices of drugs through Drugs Pricing Committee (DPC) meetings held on October 9, 2012, a subcommittee meeting on November 19, 2012 and on January 22, 2013.
During investigations, it was revealed that some pharmaceutical companies had been given undue financial benefits by members of the committee through an exhorbitant increase in prices of their drugs.
“The management of RG Pharmaceutical aided, assisted, abetted, and in conspiracy with the DPC members got unjustified price increase of their drug Venofer injection on the basis of import invoice at the rate of 3 euros per ampoule whereas actually the company was importing its product at the rate of 2.5 Swiss francs per ampoule at the relevant time period,” reads a statement issued by the bureau.
In the same way, the management of the company also got an unjustified price increase of their drug Maltofer syrup through a toll manufacturing agreement on the basis of that import cost of raw material of active ingredient (iron) at Rs46.272 per 120ml and 94.80 Swiss francs per kg.
The investigation also revealed that the cost of the active ingredient was 49.3 Swiss francs per kg at that time which came to be approximately Rs24 per 120ml and not Rs46.272 per 120ml.
Investigations established that the management of the company derived wrongful gains of Rs385.11 million as a result of unjustified price increase obtained through fraud and misrepresentation.
‘Imported medicines have no alternatives in Pakistan’
Later, company directors Tariq Haider and Mian Khalid Mehmood submitted an application for a plea bargain.
The NAB chairman accepted the plea bargain of Rs385.11 million which were approved by the Accountability Court Islamabad.
The prices of the drugs will be reverted to their 2012 levels by RG Pharmaceutical in light of the deal. Moreover, Drugs Regulatory Authority is being issued instructions to implement the order by not allowing the company to sell its above drugs beyond 2012 prices.
Published in The Express Tribune, June 16th, 2016.