Impossible: Dolo 650 manufacturer on Rs 1000 crore marketing budget
New Delhi, Aug 19: Bengaluru-based pharmaceutical company Micro Labs Limited on Friday termed allegations that it had gifted freebies worth Rs 1000 crore to doctors to promote its Dolo-650 tablets as "baseless and incorrect".
"It is impossible for any company to spend Rs 1000 cr on the marketing of a brand which did 350 cr in the Covid year. That too when Dolo 650 comes under NLEM (price control)," said Jayaraj Govindaraju, Executive Vice President, Marketing and Communication, Micro Labs Limited told ANI.
The Supreme Court on Thursday described as a "serious issue" the matter raised by an NGO relating to the CBDT's allegation against the makers of Dolo tablets that they had distributed freebies worth about Rs 1,000 crore to doctors for prescribing their 650 mg anti-inflammatory, fever reducer drug.
Senior advocate Sanjay Parikh alleged that to ensure a higher profit margin, the company manufacturing Dolo tablets distributed freebies to doctors to prescribe the 650 mg drug. The advocate also said he would like to bring more such facts to the knowledge of the court after a response is filed by the Centre.
The Central Board of Direct Taxes(CBDT) had on July 13 accused the makers of the Dolo-650 tablet of indulging in "unethical practices" and distributing freebies worth about Rs 1,000 crore to doctors and medical professionals in exchange for promoting products made by the pharmaceutical group.
The claims were made after the Income Tax department had on July 6 raided 36 premises of the Bengaluru-based Micro Labs Ltd. across nine states.