The drug traders in Kerala have withdrawn the boycott against pharma major Alembic following an assurance from the company not to supply its drugs directly to the State Civil Supplies Corporation Ltd., (Supplyco) in future, bypassing the traders.

The Kerala drug traders had started boycotting the products of three pharma majors Alembic, Themis Healthcare and Novartis India since the last week of August, allegedly for directly supplying drugs to the State Government's Maveli retail medical store chain under the State Civil Supplies Corporation Ltd., (Supplyco). The traders allege the three companies supplied drugs worth over Rs 50 lakhs to Supplyco through 'an agent or an unrecognized stockist' based in Kochi with the connivance of some of the respective company officials in the region.

According to sources with the All Kerala Chemists and Druggists Association (AKCDA), the traders had held discussions with the company, and the Alembic head office has officially informed the traders that the deal was not done with the official knowledge of the company, and could have been done through some sub agents.

The company further assured the traders to follow only the terms of the trade agreements between AIOCD and the manufacturers in supplying drugs. Following this, the AKCDA has informed its members to withdraw the boycott against Alembic, said sources.

Meanwhile, the boycott against the other two companies is still continuing. While discussions are going on with Novartis India, Themis Healthcare is yet to come to the discussion table, it is learnt.

It may be noted that the Kerala traders, besides the traders in the state of Karnataka, Andhra, Tamilnadu and Pondicherry, are also boycotting the products of the Hyderabad-based Biological E, allegedly for the unwillingness of the company to supply its new drugs with trade margins exclusive of excise duty. This issue is also yet to be resolved, according to sources.