Bangalore District Chemists and Druggists Association is now pressing the newly formed Ministry of Chemicals and Fertilizers to take a re-look at the new Drug Price Control Order(DPCO) 2013 to revise the trade margins among other issues.

The Association has sent in a memorandum to the new Minister for Chemicals and Fertilizers Ananth Kumar, seeking a slot to discuss the issue. It has referred to the Ministry the representation it made in July 2013 which was followed by a clarification issued by the department of pharmaceuticals on trade margins for wholesaler and retailers in May 2014. However, it is noted that clarification did not indicate trade margin for overall scheduled formulations either at wholesale level or retail level as per the clarification.

“We are of the view that the new government needs to take a relook at the DPCO 2013 which needs to support the wholesalers and retailers,” said V Hari Krishnan, president, Bangalore District Chemists and Druggists Association.

The need of the hour for the chemist fraternity is to request for a modification of several paras of DPCO 2013 and also incorporate trade margins to wholesaler and retailers of pharma trade, he added.

Further, BDCDA has sought for separate margins for those outlets in Urban and Rural zones. A minimum of 10 per cent margin to the wholesalers on PTR which is price to retailer  and 20 percent to the retailers on MRP has to be provided as a percentage of the price.

“Now these suggested margins are necessary as the DPCO 2013 allows brands that identify one seller drugs as distinct from those of other sellers of the same formulations which has to be stocked by the wholesaler and retailers. This is because the pharma product is a seller’s market with consumers generally buying what the doctors prescribe. Majority of the consumers are unaware of an alternate brand in the same formulation, said Krishnan.

“The government needs to appoint an agency to collect its own data on drug pricing. Right now, a  major problem which exists in DPCO 2013 is its  method of obtaining data from IMS or any other private data centre. This should be avoided as it is misleading. It does not take into account  the information to collect the medicine volume and prices at one point in the supply chain without considering the discount and the special price offers. Therefore instead of relying on IMS, the government should make efforts to collate its own data,” stated the Bangalore District Chemists and Druggists Association president.