'Absolutely baseless charge': Dolo-650 makers on freebies-in-exchange of prescriptions

'Absolutely baseless charge': Dolo-650 makers on freebies-in-exchange of prescriptions

Jayaraj Govindaraju said the company's turnover during the COVID year was Rs 350 crore, adding that it is impossible for a company to spend Rs 1,000 crore to reach Rs 350 crore target

FPJ Web DeskUpdated: Friday, August 19, 2022, 05:49 PM IST
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'Absolutely baseless charge': Dolo-650 makers on allegation of giving freebies to doctors worth 1,000 cr for prescribing it | Photo: Twitter

A day after the Central Board for Direct Taxes (CBDT) accused the makers of the Dolo-650 tablet of distributing freebies worth Rs 1,000 crore to doctors as consideration for prescribing the tablet, the company's Executive Vice President Marketing and Communication said the allegations were "absolutely baseless and 100 per cent wrong".

"Distributing Rs 1,000 crore worth freebies to doctors for prescribing dosage of 650mg during COVID is absolutely baseless charge and is 100 percent wrong," Jayaraj Govindaraju, Executive Vice President Marketing and Communication told MoneyControl.

He said the company's turnover during the COVID year was Rs 350 crore, adding that it is impossible for a company to spend Rs 1,000 crore to reach Rs 350 crore target. "There was price control on Dolo-650, we have very small margins, how could we spend that amount on this product," he added.

He further added that the Income Tax officers have collated the total marketing expenditure from all divisions of the company for the past several years to arrive at a Rs 1,000 crore figure.

Meanwhile, the Supreme Court on Thursday asked the Centre to file its response within 10 days on a PIL seeking directions to make pharmaceutical companies liable for giving freebies to doctors as an incentive to prescribe their drugs.

Justice DY Chandrachud remarked that it is a "serious issue" and said that even he has been prescribed the same tablet (Dolo-650) during COVID.

"This is not music to my ears. I was also asked to have the same when I had COVID. This is a serious issue and matter," Justice Chandrachud said.

Additional Solicitor General KM Nataraj, appearing for the Centre, said that affidavit is almost ready and it will be filed.

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