|
The Department-related Parliamentary Standing Committee on Chemicals and Fertilisers has sought the Department of Pharmaceuticals (DoP) to regulate the price of medicines under the category of trade generics - the generic pharmaceutical formulations that are primarily distributed through a separate marketing channel focused on remote, rural, and low-volume markets - in order to safeguard public interest.
The Committee, in its latest report presented to Lok Sabha on July 27, was considering the action taken by the Government on its recommendations in the previous report on 'Price rise of medicines in the pharmaceutical sector impacting the lives of ordinary citizens adversely - A review'.
It observed that in response to its observation in the previous report regarding the high difference between the Price to Retailer (PTR) and the Maximum Retail Price (MRP) of medicines, the DoP has justified the price difference in the trade generics category.
"The Committee find that instead of controlling certain unethical practices, the Department in its reply appears to justify markups in respect of medicines which fall under the category of Trade Generics," said the Panel headed by Member of Parliament Kirti Azad Jha.
It added that the Panel also find it somewhat ironical that medicines which fall under the category of ‘Trade Generics’ and are primarily distributed through a separate marketing channel focused on remote and rural markets, where the consumers will have lower purchasing power, incur additional cost due to certain logistics.
"In this regard, the Committee recommend that the Department should look into the matter and take urgent action for price regulation of medicines falling under the category of ‘trade generics’ to safeguard the interests of patients in rural and remote areas," said the Committee.
As per the ministry, the distributors and retailers in the trade-generic channel bear significant additional cost, including higher logistics expenses, greater inventory carrying costs, slower offtake, increased risk of expired stock, and higher financing costs due to smaller retail balance sheets and weaker credit access, it observed.
The Panel, in its previous report, pointed out that the PTS of ciprofloxin 500 mg and tinidazole 600 mg which came to notice of the Committee, is Rs. 450 but its MRP is Rs. 3,500 hence a whopping difference of Rs. 3,050. Similarly, PTS of Ibrufin and Labocof is Rs. 831 and Rs. 316 but their MRP is Rs. 4,560 and Rs. 2,850 respectively hence again a big difference of Rs. 3,729 and Rs. 2,534.
It sought the Department to review the matter, so that medicines to the common man should be made available at justifiable rate.
The DoP, in response to this, informed the Committee that the formulations mentioned are non-scheduled drugs falling under the definition of new drugs under Para 2(1)(u) of Drugs Prices Control Order (DPCO), 2013 and all existing manufacturers are required to apply for fixation of retail price of these formulations.
Taking examples of Ceflox-TZ 1100 tablets and CIP-TZ tablets - with PTS of Rs. 450 and MRP of Rs. 3,500, Ibuflam tablets - with PTS of Rs. 831 and MRP at Rs. 4,560, and Labocof DMR tablets with PTS at Rs. 316 and sold at Rs. 2,850, it said that these brands fall under the category of trade generics, and the trade channel of trade generics has more trade partners compared to the partners in the trade channel of branded generics.
"The distributors and retailers in the trade-generic channel bear significant additional cost, including higher logistics expenses, greater inventory carrying costs, slower offtake, increased risk of expired stock, and higher financing costs due to smaller retail balance sheets and weaker credit access," DoP informed the Panel.
|