INSUBCONTINENT EXCLUSIVE:
In the wake of the controversy surrounding Noida-based Marion Biotech about its medicine for cough and cold allegedly being linked to the
deaths of 18 children in Uzbekistan, the Pharmaceuticals Export Promotion Council of India (Pharmexcil) on Friday suspended the membership
of the company with immediate effect.
The company will thus be ineligible for incentives under the Market Access Initiative
Scheme.
Meanwhile, the data sourced from Tofler shows the Noida-based firm, promoted by Sachin Jain, has seen strong growth in revenues and
profitability in the past four-five years.
It posted operating revenues of Rs 93.11 crore in FY22, with an Ebitda (earnings before
interest, tax, depreciation and amortisation) of Rs 32.13 crore and profit after tax of Rs 21.13 crore, according to the data provided by
Tofler.
It has a net profit margin of 22.15 per cent, the data showed, and posted a 35 per cent increase in operating revenues in FY22 over
the previous year, while its profits grew 16.6 per cent.
Its revenues have grown by 75 per cent from Rs 53.37 crore in FY18 and its profits
soared about seven times to Rs 21.13 crore from a meagre Rs 3.15 crore in FY18.
Union Health Minister Mansukh Mandaviya tweeted in the
morning that following the inspection by the Central Drugs Standard Control Organisation (CDSCO) team in view of the reports of
contamination in cough syrup Dok1 Max, all manufacturing activities of Marion Biotech at the Noida unit had been stopped on Thursday night,
while further investigation is ongoing.
As for the suspension of membership, the Pharmexcil said the company failed to reply to the council
has come to our notice from the Indian embassy in Uzbekistan - media reports that 18 children died in Samarkand over a period of 2 months
after consuming Dok-1 Maks tablet having the composition of Paracetamol 500mg, Guaifenesin 200 mg and Phenylephrine Hydrochloride 10mg which
is also available in Syrup form and marketed as Dok-1 Maks tablet and syrup, manufactured by Marion Biotech and distributed in Uzbekistan by
Supply of Substandard medicines by your company leading to the death of 18 children has brought bad reputation to the Indian pharma industry
and managing director, Marion Biotech, was asked to investigate the matter and keep the council posted for further action.
Marion Biotech
has been registered with Pharmexcil as a small-scale manufacturer since 2010 and merchant exporter since 2016.
Marion Biotech exports to
various countries in the Commonwealth of Independent States, Southeast Asia, Africa and Latin America.
Earlier, Pharmexcil had suspended
the membership of Maiden Pharmaceuticals, which was linked to deaths of around 70 children in the Gambia.
