Allegation of Rs 1,000 Cr freebies given for Dolo-650 over exaggerated figure: Jayaraj Govindaraju, Micro Labs

Mumbai: Dolo-650 is a household brand in India that made the headlines after the makers of the drug were alleged to giveaway Rs. 1,000 crores worth of freebies to doctors. Central Board for Direct Taxes (CBDT) has made the allegation about Dolo-650 makers wherein they say that to ensure higher profit margin, Dolo makers distributed freebies. The apex court bench called it "a serious issue.” The Supreme Court has asked additional solicitor general KM Natraj, representing the Centre to reply within 10 days. Additionally, the court listed the matter for further hearing on September 29.

Speaking to ET NOW, Jayaraj Govindaraju of Micro Labs states that Rs. 1,000 crores spent on freebees is an absolute exaggeration as freebies are very minimal for it. He adds that Dolo is Rs. 350 crore -Rs. 400 crore brand and spending Rs. 1,000 crores seems an exaggerated number. He added that Rs. 1,000 crore is the overall marketing expenditure of the company which is 5 percent of overall revenue which they spend on all brands under the company and not just on Dolo-650 promotion. He further clarified that Rs. 1,000 crores was spent on scientific mass promotion with 500-600 field forces and just promoting the brand.

When asked about price mechanism he says that Dolo is well under NLEM and has been following all price mechanism rules. He also said that those reports making statements like drugs having a concentration of 650 mg and more are not under price mechanism are false.

He further stated that all leading brands gained substantially during COVID-19. Dolo-650 got traction during COVID-19, and it is widely prescribed. Many of our factories stopped producing other drugs which had a higher portfolio to produce Dolo-650 during the pandemic and that's how they look to serve the nation when in need.