The Mumbai-based Aventis Pharma and Alkem Laboratories informed the Monopolies and Restrictive Trade Practices Commission (MRTPC) that they are ready to supply stocks to all the eligible pharmaceutical distributors, including the members of Tamil Nadu Pharmaceutical Distributors Association (TNPDA). The companies were responding to a contempt of court notice issued by the commission on their alleged restrictive drug supply practices, according to TNPDA sources.
In the commission's hearing on TNPDA's contempt of court petition against discontinuation of supply of medicines to its members, on April 28, the other defendants including the All India Organisation of Chemists and Druggists (AIOCD) and its Tamil Nadu affiliate sought more time to respond to the notice. The associations informed the commission that they received the contempt of court notice, served by MRTPC in the beginning of April very recently and would need some more time to respond. According to TNPDA sources, the commission has allowed another two weeks' time for the associations to respond.
The petition was filed in January 2008 by TNPDA, an affiliate to the newly formed All India Chemists and Distributors Federation (AICDF), against Alkem Laboratories, Aventis Pharma and Franco Indian Pharmaceuticals for violating the MRTPC's interim order of 2005 against discontinuation of supply of medicines to the association members without a valid reason.
"With the issuance of contempt of court notice by the commission, the Aventis Pharma officials informed us that the company is ready to supply drugs to our members and has placed the orders too. However, Alkem Lab has informed the commission that it is also willing to restart supply and we are waiting for the supplies to be commenced," said a source from TNPDA. Meanwhile, the response from Franco Indian Pharmaceuticals is yet to be known, he added. An AICDF official informed that the next hearing is fixed on August 2008.
Of late, the TNPDA pointed out that the suspension of supply to its members is against the interim order of MRTPC, issued in 2005, in its case against All India Organisation for Chemists and Druggists (AIOCD), Tamil Nadu Chemists and Druggists Association (TNCDA), various pharmaceutical manufacturers' associations and three other drug companies.
In the interim order of September 2, 2005, the Commission had directed the pharmaceutical manufacturers associations not to act on instructions of TNCDA and AIOCD to stop supply of pharmaceutical products to the members of TNPDA. TNPDA, in its initial petition, alleged that AIOCD and its affiliates are pressurising the companies to deny supply to its members.
The main petition, filed in 2005 by TNPDA against TNCDA, AIOCD, Indian Drug Manufacturers Association (IDMA), the Pharmaceuticals & Allied Manufacturers & Distributors Association Ltd (PAMDAL), and three pharmaceutical companies - Merck (India) Ltd, Aventis Pharmaceuticals Ltd and Tablets India Ltd - is also under consideration of the Commission.