Karnataka pharma companies are upset over the hefty hike in prices of folic acid and paracetamol effected by the Chinese suppliers in recent weeks. Folic acid price is jacked up by 1333 per cent and that of paracetamol by 32.5 per cent. These drugs are being regularly imported from China and the unprecedented price hike is in the wake of rising demand for these bulk drugs in countries like India.
In 2014, folic acid was priced at Rs.3,000 a kg but in the last three weeks, it was increased to Rs.40,000 per kg. Now the current exorbitant pricing indicates a clear 1333 per cent or 13 times rise, Harish K Jain, treasurer, KDPMA and director, Embiotic Laboratories, told Pharmabiz.
Paracetamol is a widely used over-the-counter pain reliever and a fever reducer which is in great demand during the monsoon months. This antipyretic drug is now available at Rs.285 per kilogram as against the Rs.215 three weeks ago which is a 32.5 per cent increase. Paracetamol is grossly expensive for small pharma companies,” Jain pointed out.
The small and medium pharma companies in the country could have continued to manufacture both folic acid and paracetamol. But the DPCO 2013 and the pollution control norms have stalled their capacity expansion. This in-turn led formulation companies to import several bulk drugs in large quantities from China.
Folic acid is a key drug which has varied benefits for well being and therapies. There are companies including Medico Remedies, Triveni Chemicals, Alpha Chemika, Vee Excel Drugs and Pharmaceuticals, Kamakashi Drugs and Pharmaceuticals which manufacture folic acid but in small volumes.
Hyderabad-based Sri Krishna manufactures both paracetamol and folic acid. It has a US FDA certified facility produces folic acid. It is also a pioneer in the manufacture of paracetamol for the domestic market.
“Small pharma units can factor in a 5 per cent price escalation. Now it is impossible for exporters and companies catering to hospitals and institutional tender supplies to endure with this kind of escalation of prices of both paracetamol and folic acid, Jain added.
The Union government, under its National Rural Health Mission (NRHM) provides Iron and Folic Acid supplements to pregnant, lactating women, besides children and adolescents to prevent and treat anaemia. “This provides a huge opportunity for small and medium companies to supply the drug and generate revenues. However, such a massive price hike is making it unviable to focus on supplies of paracetamol and folic acid formulations,” said Jain.