Authorities at the public sector Hindustan Antibiotics Ltd (HAL) have contradicted key notings in the minutes of a November 24, 2010 meeting while denying the expiry of large quantities of antibiotics in the factory godowns.
In an attempt to whitewash the past, authorities at the public sector Hindustan Antibiotics Ltd (HAL) have contradicted key notings in the minutes of a November 24, 2010 meeting while denying the expiry of large quantities of antibiotics in the factory godowns.
In an exclusive report on July 20, DNA pointed out how more than an estimated 40% of the unsold antibiotics valued at Rs21.79 crore expired in the factory godowns as of December 2010. The HAL is the country’s first public sector drug manufacturing company, established at Pimpri near Pune on March 10, 1954 to produce affordable drugs in the country.
HAL documents in DNA’s possession showed that drugs which have expired included Rs35 lakh worth of Haxime (100 mg & 200 mg), Rs32 lakh of Cepha (500mg), Rs18.86 lakh of Amox (500mg) and Rs15 lakh of Amphi (500 mg).
The DNA report also cited minutes of the HAL meeting on November 24, 2010 between the management and union representatives and chaired by general manager (manufacturing & maintenance) KP Rajan. The minutes recorded a statement by manager (marketing) VP Mupade that as of November 2010, the company had an inventory of Rs10 crore “and few products worth Rs1.5 crore have completed their expiry. These products are to be recycled to minimise loss.”
Significantly, these minutes were prepared by HAL’s personnel manager Trilochan Das who, on Thursday, issued a statement contesting the DNA report and contradicted his own minutes and other company documents such as the Finished Good Status report (15.12.10) and Physical Stock Verification report (13.9.10).
Das, in his rejoinder, asserted that “the value of our expired goods for the year 2010-11 is Rs81 lakh which is 0.95% of the total value of production”. Company insiders say that the quantity of drugs that has expired in recent years is of a far higher value.
While Das has stressed that the recycling of expired products has never been carried out in the history of HAL, as this is not permissible under FDA rules, his 24/11/2010 minutes record a discussion on the expiry of the products and Mupade’s statement that the expired products would be recycled.
The minutes also reflect a serious concern about poor marketing efforts and expiry of stocks at HAL. As reported by DNA, some HAL insiders fear that deliberate attempts are being made to drive the sick PSU to its death although this prominent pharma company with 900 employees has a strong potential for revival.
HAL was declared sick by the Board for Industrial and Financial Restructuring (BIFR) in March 1997, and a revival package was approved in March 2006. Under the rehabilitation scheme, the company’s performance improved substantially with a production of about Rs155 crore in 2007-08, against a production of Rs54.6 crore in 2006-07.
From time to time, HAMS raised the issue of large unsold stocks with general manager (marketing) DM Jha who later resigned.
Significantly, the company’s managing director AS Vaidya has consistently declined to provide clarifications when approached by DNA.
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