India Pharma Outlook Team | Tuesday, 19 March 2024
According to the data released by the Election Commission, almost thirty-five pharmaceutical companies in India contributed Rs 1,000 crore to political parties through electoral bonds. The revelation that at least seven of these companies were under investigation for producing substandard drugs at the time of their bond purchases is a matter of concern.
Yashoda Super Speciality Hospital has emerged as the primary purchaser in the healthcare and pharma bond market, having acquired 162 bonds valued at ₹ one crore each, totaling ₹162 crore. Dr. Reddy's Laboratories came in second, purchasing 80 bonds valued at ₹ one crore each, totaling ₹80 crores.
Interestingly, Yashoda Hospital faced scrutiny from the Income Tax Department in December 2020, while Dr. Reddy's Laboratories encountered tax-related actions in November 2023. Specifically, Dr. K Nagender Reddy of Dr. Reddy's Laboratories was targeted over allegations of tax evasion.
The latest report compiled by a joint effort of Newslaundry, Scroll, and The News Minute revealed that the Hyderabad-based Hetero Labs and Hetero Healthcare purchased electoral bonds totaling Rs 39 crore in April 2022. However, the Maharashtra Food and Drug Administration issued six notices to the Hyderabad-based company in the next ten months for substandard drugs. At least three of them pertained to Remdesivir, an antiviral drug widely used to treat COVID-19. Surprisingly, the Telangana regulator did not act against Hetero.
In addition to the Rs 39 crore bonds Herero bought in 2022, the pharma company also purchased bonds worth Rs 10 crore in July 2023 and Rs 11 crore in October 2023, a total of bonds worth Rs 60 crore.
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