I heard that the margins in Medical retailing are quite higher owing to multiple layers and even Doctors that prescribe a medicine gets their own commissions. But I never had a clue of how much the effective total margin would be for the whole distribution chain.
While I was searching for multi-vitamin capsules sold in India for a price comparison and hit the page at Ind-Swift Healthcare where the firm mentioned the MSRP and price to super stockist (or the first level distribution as per my understanding).
The prices vary for different items. Injectable are the lowest, where MSRP is just about 50-100% higher than the super stockist price. But when it comes to tablets and capsules, the margins are as high as 1000% to 1200% and some nutrients are still higher.
Can't believe? Check for youself here : IndSwift
No wonder, Doctors always prescribe a certain medication for a variety of choices.