Lucknow – A fresh audit carried out by the Uttar Pradesh Food Safety and Drug Administration (FSDA) has highlighted a dramatic mismatch between what hospitals actually pay for medicines and the maximum retail price (MRP) displayed on the packaging. In many cases, the MRP is dozens of times higher than the amount spent by hospital pharmacies.

Scope of the investigation

The study analysed purchase records from 214 pharmacies operating in medical colleges and private hospitals. Out of the 130 medicines examined, 36 products carried an MRP that was more than ten‑fold above the procurement price. The most extreme example showed an MRP roughly 67 times the cost to the hospital.

Polymyxin‑B injection tops the list

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

Wide variations in critical injectable medicines

Other high‑impact injectables also exhibited stark gaps. A drug for advanced liver disease was procured at about ₹56 but bore 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 cornerstone in treating resistant bacterial infections, the MRP varied between 5.3 and 10 times the purchase price, depending on the brand.

Caspofungin 70 mg, an antifungal agent, displayed the widest gap in this group. One formulation cost the hospital ₹800 but was marked at ₹21,230 (about 26.5 ×). Another batch was bought for ₹897.75 and labeled at ₹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 bore a retail label of ₹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 accept the inflated hospital‑pharmacy rate, potentially driving up overall treatment costs.

Implications for transparency and regulation

The FSDA’s findings have intensified calls for greater pricing transparency, stricter 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 protect patients from undue financial burden.