The drug traders have demanded the Government to constitute an autonomous body or a new committee to monitor price reduction by pharmaceutical companies in the case of branded generics, it is learnt.
Traders led by the All India Organization of Chemists and Druggists (AIOCD) has already suggested this to the Government at the recently held meeting of the Pharmaceutical Advisory Forum, initiated by the Union Chemicals & Petrochemicals Minister, Ram Vilas Paswan.
Reacting to the Pharmabiz.com report yesterday on 'IDMA says 30 odd member cos reduce prices of branded generics', a top level office bearer with AIOCD said though the voluntary price reduction was a welcome move, an appropriate authority should be in place to monitor reduction in prices of branded generics.
"It is necessary to have an autonomous body or committee with representatives from the manufacturers, trade and Government side to monitor and ensure the manufacturers are really effecting the price reduction. We will stand by our earlier commitment to reduce the trade margins on branded generics, provided such a mechanism is in place. Otherwise, this so called price reduction could end up as an eye wash to impress the Minister, and the public may not be knowing whether the companies have actually reduced the prices or not" noted the source, and added that the association has already suggested the Government to form an autonomous body to monitor the price reduction.
They noted that general perception and propaganda among the public and the authorities was that the traders are looting the public in the case of branded generics. AIOCD was the first to suggest capping of branded generic prices, including voluntary reduction of trade margins and prices.
As reported in Pharmabiz.com, the Indian Drugs Manufacturers Association (IDMA) said at least 30 odd member companies of the organization have voluntarily reduced the prices of branded generic products. The companies that reduced prices include Albatros Healthcare Pvt. Ltd., Alkem Laboratories Ltd., Baroda Pharma Private Limited, Bescoat, Biochem, CFL Pharmaceuticals Ltd., Dagon Pharmaceuticals Pvt. Ltd., Dana Pharmaceuticals Pvt.Ltd., Dupen Laboratories Pvt. Ltd., DWD Pharmaceuticals Ltd., Eu - Medicaments, Group Pharma, Hindustan Pharmaceuticals, Indoco Remedies Limited, Ind-Swift Ltd., Intas Pharmaceuticals Limited, Ipca Laboratories Limited, Lyka Labs Limited, Lark Laboratories (India) Ltd., Medley Pharmaceuticals Ltd., Mercury Laboratories ltd., Natco Pharma Limited, RPG Life Sciences, Shine Pharmaceuticals Ltd., South India Research, Stadmed, Troika Pharma and Unimax.
The association had said most of its members have voluntarily reduced the prices of branded generic products manufactured by them and some of the existing prices are already lower than the price of brand leaders in that segment. Further, its members have voluntarily agreed to reduce the trade margins for all such products which are higher than the current trade margin of 8 per cent to wholesalers and 16 per cent to retailers in the case of scheduled drugs and 10 per cent to wholesalers and 20 per cent to retailers in the case of non-scheduled drugs. These prices would be revised downwards so as to ensure that the margins do not exceed 15 per cent and 35 per cent to wholesalers and retailers respectively, IDMA had said.