A market study undertook by the Delhi drug administration at the behest of Ram Vilas Paswan, Union Chemicals and Fertilizers minister, on the trade margins of three fast moving medicines in Delhi market has brought out startling facts with regard to the profits enjoyed by brand pharma and retail trade in sale of branded and generic drugs respectively. The drugs selected were Nimesulide, Omeprazole and Cetrizine.

Click for detail study on Nimesulide

The study shows that while the wholesale rate of generic version of Nimesulide 100 mg is as low as Rs 1.20 for a 10-tablet strip, its retail price is between Rs 21 to Rs 30. The same drug, when comes as a branded generic is priced Rs 38.61 (Nise of Dr Reddys).

Click for detail study on Omeprazole

The study on Omeprazole 20 mg capsules showed that the wholesale price of generic drug manufactured by Makmaul Labs and Cyper Pharma are just Rs 3.30. However, the MRP fixed by these companies are Rs 36 and Rs 40 respectively. Leading brands in this segment Omex 20-Caps (Dr Reddys), Ocid- 20 Caps (Cadilla Healthcare) and Protoloc 20 Caps (USV Ltd) are priced at Rs 64.80 (15 tablet strip), Rs 43.14 and Rs 43.72 respectively.

Click for detail study on Cetrizine

In the case of Cetrizine 10 mg, the generic drug is made available to the retailer at a rock bottom price of Rs 0.80 for a strip with a retail price tag of Rs 26. The leading brands marketed by Glaxo Smithkline (Cetizine tabs) or Lupin (CZ-3 Tabs) are priced at Rs 31.46 and Rs 27 respectively.

According to sources, the variations in the actual cost of production and the retail price are an indication of the hollowness of the argument of the drug industry that competition will keep the prices in check. "All these drugs have sufficient competition in the market. But still they are priced exorbitantly," they feel.

The results of the study are to prove a shot in the arm for the minister who is attempting to bring down the drug prices by controlling unreasonable profit margins. The minister is known to have taken serious note of the high retail price of the drug as compared to the almost negligible manufacturing cost.

It is known that the demand for the market survey was one of the first directions given by the minister to NPPA once he assumed office. The NPPA, in turn has sought the help of drugs department, sources said.