How does one say chutzpah in Hindi?

A few drugmakers ‘bent the rules’ and used a government directive on labeling to charge more than they should have for some popular medicines. The companies were supposed to include taxes in the prices printed on packs - but used that as cover to raise prices dramatically.

The Indian government simply wanted the maximum retail price to be “inclusive of all taxes” instead of packaging that displayed the maximum price plus “local taxes extra.” As a result, the wholesale price index for drugs shot up.

An investigation carried out by the Indian edition of the leading medical bulletin, the Monthly Index of Medical Specialties, found that several drugmakers, including leading manufacturers were especially audacious. A Dr. Reddy’s drug, for instance, suddenly rose 18.5 per cent, while a Novartis medicine spiked 20 percent. One med sold by Torrent jumped 18 percent.

“Surely, such hikes cannot be attributed to inclusion of local taxes only,” Dr C M Gulhati of MIMS tells India’s Business Standard.

Of course, not. But one can’t blame them for trying. Even struggling generics companies have to make a rupee or two. Now, though, it’s back to the drawing board. They’ll simply have to find another way to raise prices, and lose the confidence of the public in the process.[tags]Dr. Reddy’s Laboratories, Generics, India, Novartis, Prices, Torrent Pharmaceuticals[/tags]