The prices of commonly used generic drugs in Haryana have come down by about 20 per cent as compared to the MRP applicable for the same drugs in other parts of the country after the state government succeeded in persuading the Haryana State Chemists and Druggists Association (HSCDA) to prepare a uniform "recommended price structure" for 254 generic drugs sold through the 6,000 odd retail outlets of the state.

Through the agreement, the government has made sure that a strip (10 tablets) of Nimesulide 100 mg is sold at a suggested retail price (inclusive of all taxes) of Rs.5, instead of its MRP (local taxes extra) printed as Rs.25. The price of Ciprofloxacin 250 mg (10 tablet strip) has come down to an all-inclusive rate of Rs.15 as against its printed MRP of Rs.31. Amoxycillin 250 mg capsule strip is to cost Rs.25 (Rs.35 MRP) and the rate of Amoxycillin 500 would come down to Rs.45 from Rs.57 as per the agreement.

According to RK Khera, president, HSCDA, the recommended price list, which includes almost all commonly used drugs have been mailed to all members of the association. The retail chemists have prominently displayed the price list in front of their shops, thereby creating history of sorts in the country's drugs retail trade.

Interestingly, the government has also made sure that its reforms do not clash with the rights and responsibilities of the National Pharmaceutical Pricing Authority (NPPA). Since price control on many drugs that are on the list (Ciprofloxacin for example) have been questioned in the Court of Law, the government and the association have ensured that there is no legal issues involved in the agreement. The price list displayed by the chemists points out that the "suggested retail price is for members, in the interest of consumers, and not for any legal purpose."

Sources with the state health department informed that the decision to have a uniform price would also have a positive impact on the retail drug trade. The huge (even 300 per cent at times) profit margins offered by the drug companies to push their generic products gave rise to undercutting and severe unhealthy competition among the retailers. "The list offers reasonable margin for chemists. They are also happy as the uniform list has put an end to the dirty price war that was on the rise among retailers," they opine.

Meanwhile, the government, on its part is going all out to promote generic medicines. They have already decided to restrict the movement of medical representatives in government institutions to discourage the prescription of branded medicines. All government doctors and medical practitioners in the state have been asked to give preferences to generic medicines. With generic medicines currently enjoying less than 10 per cent of the state's drug market share, the government feels that there is much to be done before the patients in the state really begin to enjoy the fruits of its efforts to bring down the trade margins and have in place a uniform price structure in generic drugs.