Indian Pharmaceutical Association (IPA) has claimed that their member associations have voluntarily cut down the trade margins on generic drugs exclusively promoted through trade route, resulting in a price reduction in the range of 2 to 70 per cent on these drugs. In a communication to the Department of Chemicals and Petrochemicals, IPA indicated that the changes would reflect on 216 packs of generic medicines marketed by Alembic, Ranbaxy, Emcure and Unichem.

The pharmaceutical associations Indian Drug Manufacturers Association (IDMA), Organisation of Pharmaceutical Producers of India (OPPI) and IPA had on September 18 requested all their members to bring down trade margins on all generic medicines to the level of 15 per cent and 35 per cent for wholesalers and retailers respectively. It also wanted the revised trade margins and the resultant lower prices of such drugs to consumer be made applicable on all batches manufactured from October 2, 2006. The disclosure that four IPA members have already initiated this exercise is part of this commitment.

According to IPA estimates, Alembic brought down the prices of 12 packs by 10 per cent, 39 packs by 11 - 20 per cent, 38 packs by 21 - 30 per cent and 28 packs by 31 - 40 per cent by cutting down on the trade margins. In the case of Ranbaxy there has been a 10 per cent reduction in the case of 39 packs and 11 - 20 per cent reduction for 11 packs. In nine packs the reduction was between 21 to 30 per cent. It was 31 - 40 per cent for 11 packs and 41 - 50 per cent for 3 packs. Unichem reduced the prices of 7 packs in 31 - 40 per cent range. Emcure announced 31-40 per cent price reduction for 4 packs.
The details of companies like Cadila Health, Lupin and Wockhardt are awaited. Interestingly, six members of IPA, namely, Dr Reddys, Glenmark, Matrix, Sun Pharma, Torrent and USV declared that they do not offer margins beyond the prescribed limits and hence no reduction in prices.