 "US Congress probes Indian pharma majors for drug price hike")
The US Congress has pointed out price hikes to the tune of 390-8,200% across ten products and has asked the fourteen generic drug makers to submit detailed information regarding price hikes undertaken for these particular generic drugs.
“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,” the letter to the fourteen drug companies mentioned.
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For instance here's a letter to Sun Pharma, “We are writing to your company to request information about the escalating price it has been charging for three drugs: Divalporex Sodium ER, Doxycycline Hyclate and Albuterol sulfate, which are used to prevent migranes,and treat certain types of seizures to treat a variety of infections and to treat asthma and other conditions of the lung , respectively. According to data provided by the Healthcare Supply Chain Association (HSCA) the average prices charged for these drugs have increased as much as 736% for Diavalporex Sodium ER, 8281% for Doxycycline Hyclate and 4014% for Albuterol sulfate from October 2013 to to April 2014. Over the time period, the average market price went up by as much as $735 for Diavalporex Sodium ER, $1,829 for Doxycycline Hyclate and $424 for Albuterol sulfate.”
The companies have been asked to give detailed information such as total gross revenue of companies from these drugs, the dates, quantities, purchasers, prices for sale of all these drugs, profit projections etc by 23rd October, 2014.
Consequently, pharma stocks have been trading in the red on Wednesday on BSE. Sun Pharma was trading 5% lower at Rs 798 while Dr. Reddy's scrip were trading down by over 3% at Rs 3,002.65 on BSE during afternoon trade.
It is yet to be clear whether the investigation would result into a recall or substantial penalty.