CFTC commenced investigations against Maula Pharmacy for allegedly engaging in unconscionable conduct. During the inspection conducted on 3rd February, 2021 in Lilongwe, the Commission found that Ace Pharmacy was selling Ivermectin drug, at K72,000 per box of 20 tablets (thus K3,600/tablet).
The product’s market benchmark retail price was K500-K1,000 per tablet. Ace Pharmacy submitted that Maula Pharmacy supplied them the product at K68,750.00 per box of 20 tablets, (thus K3,437.50 per tablet). The Commission considered the alleged price of K3,437.50 per tablet to be way above the product’s benchmark retail price.
CFTC investigated the matter under Section 43(1)(g) of CFTA. Central Medical Stores Trust submitted that a box of Ivermectin containing 100 Tablets was being sold at K10,175.09 (MK101.75/tablet). The benchmark price on the market was around K500-K1,000. The evidence showed that the product’s selling price by the Respondent was MK3,437.50/tablet. The burden of showing that this was not excessive lay on the Respondent. The Respondent did not provide documented evidence or receipts to show that their pricing was not unreasonable and excessive. The Respondent has been penalized before for excessive pricing of Covid-19 materials and medicine.
The Commission resolved that the Respondent should pay a fine of Five Hundred Thousand Malawi Kwacha (MK500,000.00) for engaging in unconscionable conduct through excessive pricing of medical supplies.