Lucknow – A recent audit carried out by the Uttar Pradesh Food Safety and Drug Administration (FSDA) has highlighted a dramatic mismatch between the amounts hospitals actually pay for medicines and the maximum retail prices (MRP) displayed on the packaging. In several cases, the printed MRP is dozens of times higher than the price the hospital pharmacy incurs.

Scope of the investigation

The study examined procurement records from 214 pharmacy outlets attached to medical colleges and private hospitals. Out of 130 medicines scrutinised, 36 showed an MRP exceeding ten‑fold their acquisition cost. The most extreme example exhibited an MRP roughly 67 times the purchase price.

Polymyxin‑B injection tops the list

The largest disparity involved a Polymyxin‑B injection, used for severe bacterial infections. Hospitals bought the vial for ₹74.09, yet the label listed an MRP of ₹4,980.94 – a difference of nearly 67 ×.

Wide variations in critical injectable medicines

Other high‑impact injectables also displayed stark gaps. A drug for advanced liver disease was procured at about ₹56 but carried an MRP of ₹3,050. Similar mismatches were observed in medicines targeting serious bacterial and fungal infections.

Meropenem and Caspofungin price spreads

For Meropenem 1 g, a key antibiotic, the MRP ranged from roughly 5.3 to 10 times the purchase price depending on the brand.

Caspofungin 70 mg, an antifungal, showed the widest gap in this group. One formulation cost the hospital ₹800 but was labelled at ₹21,230 (about 26.5 ×). Another batch was bought for ₹897.75 and bore an MRP of ₹19,892.

Cancer and life‑saving drugs also under scrutiny

The audit flagged several oncology and other life‑saving medicines with similarly inflated MRPs. While high printed prices can give manufacturers room for discounts, the findings raise questions about how these figures are set and communicated to patients.

Medical devices mirror the trend

Price inflation was not limited to pharmaceuticals. A three‑way stopcock was purchased for just ₹6.40 yet carried an MRP of ₹163. Another piece of equipment cost the hospital ₹20.95 but was labelled at ₹500.

Limited availability squeezes patient choice

When a drug is stocked only in a particular hospital pharmacy—or is scarce in the open market—patients have little leverage to compare prices. Consequently, they may be forced to buy the medication at the inflated hospital‑pharmacy rate, potentially raising overall treatment costs.

Implications for transparency and regulation

The FSDA’s findings have amplified calls for greater pricing transparency, tighter procurement oversight, and regular monitoring of MRPs for both medicines and medical consumables. Better insight into the relationship between purchase costs and retail prices could help curb excessive mark‑ups and shield patients from undue financial strain.