A section of the pharmaceutical manufacturers in Tamil Nadu are seeking pharma industry associations' intervention to lift the unilateral embargo enforced by the neighbouring Kerala drug traders for the last six years against new versions of old molecules.

Pharmabiz learnt that some of the small drug manufacturers in Tamil Nadu have sought the help of the Confederation of Pharmaceutical Industries (CIPI) to discuss the matter with the office bearers of the AIOCD. CIPI leadership said the association would bring this issue once again before the AIOCD, and if required, would seek co-operation from other stakeholders in the industry.

Since 1998, the drug traders in Kerala have been unwilling to trade any new versions of the old molecules with more than ten brands, a unanimous decision being implemented by the All Kerala Chemists and Druggists Association (AKCDA), the only pharmaceutical trade association in Kerala. Kerala is the only state in India to effect a strict 'no' to old molecules, with a view to control the proliferation of numerous brands in the medical shops. Despite repeated pressure from the industry and even from the AIOCD, the unrelenting Kerala traders stuck to their decision yet, informed sources.

According to top-level AKCDA sources, the association has so far identified about 48 products of various manufacturers and is strictly implementing the embargo, which will continue. " We are not only concerned about the brand proliferation of obsolete molecules, but are also concerned about the quality of the drugs floating in the market. Primarily the retail chemist is accountable if something happens. We are not saying no to old molecules, which come with innovation and better curative properties. We wish the same will be implemented in other parts of the country," said the source.

The manufacturers point out the very survival of a good percentage of the SSIs is dependent on old molecules. Most of the SSIs have their markets only in the home state and in the neighbouring states, which is the only viable cost effective marketing strategy from an SSI point of view considering the logistics and other cost factors involved in marketing the products in far and upcountry markets. At least 200 odd SSI manufacturers in Tamil Nadu consider Kerala as a major market for their products, and numerous companies have been exiled from that market since 1998.

"AIOCD, the national body of the traders, enters into clear cut trade agreements with the pharma manufacturers. These products are manufactured in accordance to the rules of this country and with the approval of the drug regulatory mechanism. Then, we don't understand the logic in the decision of the Kerala traders, who are also said to be part of the AIOCD. Why should they take up the proactive role of enforcement agencies? It is more of an organized mafia activity," fumes a manufacturer.