Bengaluru Drug Racket Prompts Major Policy Shift

Rattled by a significant spurious drug racket, the Karnataka government is contemplating a radical overhaul of its medicine procurement system for hospitals. Health Minister UT Khader announced plans to explore direct sourcing of drugs from manufacturers, bypassing intermediaries such as carrying and forwarding (C&F) agents and stockists.

This proposal follows an ongoing investigation into the Bidadi spurious drug racket, which has already led to the cancellation of licenses for 16 retail and wholesale firms and the suspension of eight others. Notably, a Pfizer C&F depot in Nelamangala is among those suspended. The minister highlighted concerns that multiple distribution stops could obscure accountability.

The suggested changes are partly inspired by similar reforms in Uttar Pradesh, which has tightened traceability requirements for institutional drug supplies. Karnataka officials are examining patterns observed in Belagavi, where a pharmacy allegedly procured a large quantity of medicines from a Pfizer C&F agent at a discount, with most of the stock reportedly diverted to the open market.

Pfizer has stated its commitment to patient safety and product quality, asserting its cooperation with authorities. The company has taken steps to support the investigation, including removing specific batches from the market to prevent confusion between original and counterfeit products.