The All India Organisation for Chemists and Druggists (AIOCD) has decided to launch a non cooperation action against the Mumbai based Nicholas Piramal India Ltd (NPIL), alleging that the company is involved in anti-trade activities in marketing its top selling cough syrup brand, Phensedyl.

The AIOCD national committee meeting held at Goa from 28th to 30th September, has unanimously taken the decision and has commenced implementing it from 1st October 2007, it is learnt. The sources from the organisation said that the Rs 110 crore cough syrup is sold widely in the country through unauthorised trade route, especially in north and north-eastern states including Uttar Pradesh and Assam. Phensedyl is the country's third largest selling drug in terms of value.

The traders added that it has identified the channels, through which the product is sold in much higher price than the printed maximum retail price, in this region. Further, the sales through authorised trade channels have been reduced.

"The product is sold out in high prices, say upto Rs 70 to Rs 80, in the northern states and we think that this will not take place without the knowledge of the company officials. We have decided to refuse co-operation on sales of all the products from Nicholas Piramal," said an AIOCD source on condition of anonymity. Around 95 per cent of the company's Rs 1000 crore market in India is channelled through AIOCD, added the source.

Though the organisation has raised the issue with the company officials, the company refuted the allegations. However, the organisation is conducting discussion with the marketing officials in NPIL again in the current week to settle the issue, it is learnt.

NPIL's Phensedyl contains 10IP of codeine phosphate, which is considered to be misused as substitute for alcohol. About 20 to 25 per cent of this prescription drug is misused, informs traders body. Phensedyl and the similar codeine based Corex from Pfizer India Ltd are the two cough syrup brands which provide considerable revenue to the companies. Nevertheless, AIOCD has not commenced any action against Corex as on now.

As per the information available, NPIL has taken the issue into consideration in 2006 and came up with holograms in its package to prevent abuse of Phensedyl. The sources also earlier commented that the NPIL neither sell the product in North-Eastern states nor exports to Bangladesh. However, the company officials were not available to comment on the latest non-cooperation implemented by the traders.

Recently, the shortage of codeine has affected the business of NPIL and Pfizer in domestic market. Reports say that Corex, the first highest selling product in terms of value and NPIL's phensedyl has plunged to 8th and 49th spot respectively due to codeine shortage. The company witnessed a sales loss of Rs 250 million in the first quarter of financial year 2007-08 compared to the same quarter last year, due to severe shortage.