Coming down heavily on the National Pharmaceutical Pricing Authority (NPPA) for its lethargy to take action against violators, the All India Chemists and Distributors Federation (AICDF) has urged the national drug price regulator to initiate action against the erring manufacturing companies.
According to the traders’ body, several manufacturing companies are fixing two types of prices for same brand of products of one batch for the purpose of supplying to hospitals and for wholesalers. AICDF has alleged that NPPA is favouring the manufacturing industry for all their violations and destroying the trade sector. It is functioning not for helping the ailing community for whom the government is planning several health projects, but for the purpose of supporting the manufacturers make big profits, the association alleged.
In a letter to the chairman of the NPPA, the chemists' body has alleged that in spite of having sufficient provisions in the Act and regulations, the price regulator is biased towards manufacturers or pharmaceutical companies.
“The NPPA and its pricing policies are not patient oriented. It has never considered the pains of the ailing community. The framing of the National List of Essential Medicines (NLEM) is also having so many discrepancies. Same brand of products are sold on various prices to traders and for hospital supplies. There is no uniformity in fixing the price and no mention about specific dosage form for drugs under NLEM categories”, Joydeep Sarkar, secretary of the organisation told Pharmabiz.
His letter to the national authority says that under DPCO-2013, the fixation of price of NLEM products is an arithmetical fallacy which favours the industry. It neither supports the trade nor the common ailing community. No restriction is there for determining the introductory price of new molecules or new brand having non-schedule formulation.
Several products like primodil 5 is under NLEM, but the manufacturer has violated the provisions of DPCO-2013 and enhanced its price from Rs. 14 to Rs. 29 without following any rule, stricture or guideline of NPPA. The sudden price hike of voveran injection is also unlawful and no strong step has been initiated by the authority. In short, the NPPA orders no particular system or mandate any procedure for distribution. As per the strictures of WHO, the patient-drug supply ratio in India is still way behind. The pricing regulator is not heeding to the complaints regarding breach of provisions in the act, AICDF has said in the letter.
Regarding essential drugs, the government has fixed prices for them and categorized the medicines under a list. The manufacturing industry in the country is breaching all norms and the responsible agency is silently supporting the industry.
“After proper inspection we have detected with evidences that manufacturers are stipulating two different rates for one single brand/formulation having same MRP, keeping the lower one to be supplied to hospitals or medical practitioners and the higher rate for traders. As per our database and reports, this special rate is at least 30 per cent to 60 per cent cheaper than the original rates of the products. We find such malpractices mostly with the ‘non-scheduled items”, the letter says.
The organisation is asking that if DPCO wants every manufacturer to serve price list of products to all licensees as mentioned in paragraph 24 and 25 of DPCO 2013, then why there is different prices for same brand and same batch of products.
AICDF also wants NPPA to fix the quantity of medicines a doctor can keep at his hospital for the purpose of dispensing to his/her patients. If the doctors cannot resell the medicines as per law, then why they are not restrained by the authority for buying more than their need. If a hospital can buy medicines directly from a company at any time, then why can’t the retailers purchase it directly from a company? The NPPA or the department of pharmaceuticals (DoP) or the national drug regulator is not interested to solve such issues, the letter rues.