Examining the Intersection of Pharma Regulation, Political Donations, and Public Health: The Case of Zydus Healthcare and Remdesivir

The intersection of pharmaceutical regulation, political donations, and public health is exemplified by cases such as Zydus Healthcare and its production of Remdesivir. During the COVID-19 pandemic, Remdesivir prices soared, exacerbating concerns about drug quality. A batch of Zydus’s Remdesivir was deemed substandard by the Bihar drug regulator in May 2021, yet no action was taken. Notably, Zydus donated Rs 18 crore to the Bharatiya Janata Party (BJP) in October 2022, coinciding with the BJP’s political dominance in Gujarat, where Zydus’s manufacturing unit is based.

Similar patterns emerge with other pharmaceutical companies. Micro Labs donated Rs 6 crore to the BJP in October 2022, four months after its manufacturing units were raided by the Income Tax department. Micro Labs Limited, recognized as the producer of Dolo-650, the paracetamol tablet that gained popularity during the Covid-19 pandemic. Torrent Pharma made significant contributions to the BJP amid regulatory warnings and drug recalls. Between May 2019 and January 2024, Torrent Group, whose chairman emeritus Sudhir Mehta is close to Prime Minister Narendra Modi, purchased electoral bonds worth Rs 184 crore, with Rs 137 crore of those bonds being encashed by the Bharatiya Janata Party. These bonds were acquired through Torrent Power and Torrent Pharmaceuticals, with Torrent Pharmaceuticals contributing Rs 61 crore to the BJP, while Torrent Power’s purchase of bonds amounted to a donation of Rs 76 crore to the BJP. Hetero Group faced notices for substandard drugs, including Remdesivir, yet escaped significant repercussions. Hetero Drugs and Hetero Labs donated ₹60 crore via Electoral Bonds to Political Parties. In 2021, There was an IT raid on Hetero Drugs & Hetero Labs offices at Sanath Nagar, IT department said 550 cr unaccounted income was detected. Serum Institute of India donated Rs 52 crore, raising questions about vaccine monopolies. They did not contribute via electoral bonds but through the Prudent Electoral Trust, headquartered in New Delhi, which is the largest-known donor to the BJP, having raised approximately Rs. 272 million since its inception in 2013 and allocated 75 percent of the funds to the BJP.

Political donations are further shrouded in opacity, particularly through electoral bonds, allowing anonymity in contributions. This lack of transparency hampers efforts to scrutinize the motives behind donations and their potential influence on regulatory decisions.

The implications are profound. Regulatory bodies must bolster oversight mechanisms to ensure impartial enforcement of drug quality standards. Greater transparency and accountability in political financing are essential to prevent undue influence on public health policies. The Zydus Healthcare case underscores the urgent need for systemic reforms to safeguard the integrity of the drug regulatory process and protect public health.

 

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