The All Kerala Chemists and Distributors Alliance Ltd (AKCDA Ltd), the company entity of All Kerala Chemists and Druggists Association (AKCDA), for trading branded generics and specialty anti-cancer and anti-retroviral medicines will be launched on April 11, 2007.

AKCDA Ltd, formed as the part of AIOCD's plans to switch over to the corporatisation, is coming up with an investment of Rs 25 crore for which shares have been collected from its members with a rate of Rs 10 per share. The company is aiming to purchase drugs at one point for the shareholders and to distribute the products to the members as per the requirements.

According to sources, All India Organisation for Chemists and Druggists (AIOCD) general secretary J S Shinde will inaugurate the new company at Thrissur on April 11. But, the business operations of the company are expected to commence from June 1, 2007.

In the initial stage, the company is planning to cover the generics and anti-cancer and anti-retroviral medicines market in the state through 450 existing stockists and dealers. The company will also provide drugs to the hospitals and doctors through the system.

"The total generics market in Kerala would be around Rs 100 crore. Initially we have 60 to 70 per cent of this market under the new company," A N Mohan, president, AIOCD and the managing director of AKCDA Ltd told Pharmabiz. "We have held discussions with almost all the generic companies who have their sales in the state for tie up. What we are aiming is to set up a company in lines with the Amul Co-operative System," he added.

Later, the company will add prescription drugs into its sales portfolio in exclusive market rates. The company expects an additional investment of Rs 200 crore for this expansion. It also has plans to directly import cancer drugs from multinational pharmaceutical companies, Mohan said.

The business model of Kerala will be followed by the AIOCD affiliates in West Bengal, Orissa and Andhra Pradesh soon. The move is part of all India organisations' efforts to resist the threat for the traders from the organised retail and wholesale players. MSCDA Ltd, the company under Maharashtra State Chemists and Druggists Association (MSCDA) is also expected to commence its operations by April 2007, according to AIOCD sources.