The purchase preference to be given by the central and state public sector institutions in their future drug procurement process to public sector drug units is likely to provide drug PSUs an exclusive market in the sale of Rabies vaccine, Ciprofloxacin, Paracetamol, Ampicillin, Omeprazole, Vitamin B complex, Ranitidine etc. These are among the 102 drugs that are likely to be proposed by the Department of Chemicals and Petrochemicals in its Purchase Preference Policy for public sector drug purchases. Government institutional purchases both central as well as state constitute of about Rs 4,000 crore-market in the country.

The government had decided that the Purchase Preference Policy (PPP) in respect of a maximum of 102 medicines would be valid for a period of five years. It had also stated that PPP would be applicable to purchase of these drugs made by State Governments under health programmes which are funded by the Centre.

Currently, PPP is extended only to Pharma Central Public Sector Enterprises (CPSEs) and their subsidiaries, where Pharma CPSEs own 51 per cent or above, shareholding. It would be applicable to maximum of 102 medicines as notified by Department of Chemicals and Petrochemicals from time to time.

Among the list of capsules and tablets the Department of Chemicals and Petrochemicals is likely to propose are: Tetracycline, Amoxycillin, Doxycycline, Cephalexin, Rifampicin, Cebexin-Z, Indomethacin, Cefadoxil, Fluconazole, Co-trimoxazole, Metronidazole, Diclofenac Sodium, Domperidone, Cetrizine Hydrochloride, Albendazole, Erythromycin Stearate, Tinidazole, Ethamhutol, Isoniazind, Ethambutol, Isoniazid, Pyrazinamide, Chloroquine Phosphate, Ibuprofen, Norfloxacin, Ofloxacin, Sparfloxacin, Nimesulide, Furazolidone, Ornidazole, Azithromycin, Roxithromycin, Cefuroxime Axetil, Livofloxacin, Famotidine, Polyvitamin, Ascorbic Acid, Frusemide, Penicillin V etc.

Suspensions like sulphamethoxazole & Trimethoprim Mixture, Cetrizine Hydrochloride, promethazine syrup, Hamycin and various cough syrups are also to come under the list.

It would also include external lotions, eye, ear drops, ointments, LV Fluids and dry powders, liquid injectables.

The total purchases of Central Government Department [CGHS, Defence, Railways, ESIC, National Rural Health Mission (NRHM), National Aids Control Organization (NACO) etc.] are estimated to be approximately Rs 2,000 crores. The purchases of state governments account for another Rs 1,500 to Rs 2,000 crore per annum for their health programmes.