The efforts to promote generic drugs by central and various state governments may not bring the desired result to the general public unless there is a government rule to fix the reduced prices on MRP on the label for generic products, commented G.Koteshwar Rao, former assistant director of Sipra Labs, Hyderabad and an enforcement officer of Telengana.
“At present the MRPs of the branded drugs and of the generic ones are the same. Some shops sell the generics at 10 per cent discount, some other shops will sell it at 20 per cent discount. In most of the cases 30 per cent discount on MRP is allowed. Since different prices are charged for similar products in different shops, the consumer get confused why the variation in prices happens from shop to shop. So, the government should frame a rule to fix separate MRP for generic drugs and clear all confusions with regard to price variations”, said Rao who has experience in drugs manufacturing, sales, testing and enforcement of drug acts.
He was responding to Pharmabiz on the varied programs introduced by central and various state governments to provide generic medicines at cheaper rates to the public by establishing exclusive shops and encouraging private pharmacies.
The Jan Oushadhi retail pharmacies of central government, Jeevandhara stores of the previous Andhra Pradesh government, Karunya community pharmacies of Kerala government, Amma pharmacies of Tamil Nadu government and the recent efforts of the Hariyana drugs control department encouraging private pharmacies to open separate counters are exclusive projects for the campaign of generic medicines. All these governmental stores are displaying a discounted price list of generic products. But the discounted rates are not printed on the labels, but a higher MRP. This has to be changed.
He said the drugs control general of India (DCGI) had sent letters to all the state drugs control administrations to intimate him the steps taken by each state to promote generic medicines. The DCGI acted in the aftermath of a discussion held in Parliament recently on the price variations of generic and branded drugs.
The branded drugs as well as the generics come under the drugs price control order (DPCO) 2013. So retailers cannot sell a drug on a price higher than the rate fixed by the national pharmaceutical pricing authority (NPPA). But, ninety percent of retailers are promoting generic drugs at MRP rates without giving the discounts. There are examples that a few retailers sells at 10 per cent discounted rates, but all of them are enjoying a margin of 50 to 200 per cent.The view of the government to promote generic drugs is to avoid malpractices by medical practitioners like percentage commissions, gifts, foreign tours etc.