The patients who visit OPDs in hospitals in the country are spending a whopping Rs 25,000 crore annually just on medicines. This can be brought down to mere Rs 6000 crore if the government spends just 2 per cent of its GDP on public health and thus can ensure free treatment to all, according to a study by public interest groups.

Going by the prices of medicines sold at the Chittaurgarh generic medicine cooperative department shop, the study by Prayas and Jan Swasthya Abhiyan found that bulk procurement products sold to government and retailers are much lower than the MRP printed on the packs.

As per the data collected, ten tablets of albendazole tab IP 400 mg are sold to the generic shop at Rs 11 while its MRP is as high as Rs 250 outside. Likewise, alprazolam tab IP 0.5 mg (10 tabs) is purchased by the shop at Rs 1.40 while its market rate is Rs 14. In the case of ceflazidime 1000 mg injection, the tender rate is Rs 52 while its MRP to patients outside is Rs 370. The study also found huge difference of prices in the case of many other drugs.

“The prices quoted for the retailers and the government are always much lower. For example, Cipla makes three branded generic versions of 10 mg cetrizine – Okacet, Cetcip and Alerid. For 10 pills packaged strips, Cipla sells these for Rs 27.50, Rs 33.65 and Rs 37.50 respectively. Interestingly, the same drug is available in government supply at Rs 1.20 for 10 tablets,” the study said.

The NGOs also found that there is huge difference between stockist prices and MRPs for many drugs and has illustrated the case of 2.0 ml vial of antibiotic injection Amikacin as typical case study. Cadila’s amistar 500 is purchased by chemists at Rs 8 and is sold to customers at Rs 70. German Remedies version (Amee 500) has the same difference while Wockhardt’s Zekacin 500 is purchased by stockist at Rs 9.90 and sold at a MRP of Rs 70. Alembic has its version called Amikanex 500 and it is purchased by the stockists at Rs 8.22 and is sold at Rs 64.25. So is the case with the versions by Intas, Unichem, Ranbaxy and Cipla with same difference between the stockist price and MRP, as per the study.

The groups have calculated that the government can buy medicines for OPD patients at a total cost of Rs 6000 crore, going by the tender price for generic outlets whereas at present the customers, without an option to choose their product, are paying Rs 25,000 crore.