Bangalore City Chemists & Druggists Association (BCC&DA), which comes under umbrella of Karnataka Chemists Druggists Association, sees the recent order by Competition Commission of India (CCI) to permit pharmacy wholesalers to directly approach pharma companies for drugs as detrimental in the long run. In the long run, the direct link between the wholesaler and industry could lead to difference of opinion and the relationships could turn murky and sour eventually, the association says.

The CII order issued to AIOCD states that there is no need for any more no objection certificate (NOC) to appoint a stockist. The retailers could now offer discounts to customers. It was not obligatory to issue the prescribed product information services (PPIS). Instead the wholesaler and retailer could obtain the same from pharmaceutical companies on a voluntary basis.

In Karnataka, there are approximately 10,000 wholesale licenses which include retailers having additional wholesale permits to trade. However,  without an official price list it would be extremely difficult for the wholesalers to invoice and supply the medicine to retailers. “Initially, many pharma companies would be comfortable but in the long term, the lack of coordination would result in serious difference of opinion between trade and industry. This could lead to terms and conditions fall through. The end result would be huge loss for both wholesaler and pharma industry,” Ravindra Kumar, secretary, BCC&DA, told Pharmabiz in an interaction.

Now coming to the prescribed product information services (PPIS), which is a mandatory clause calling to exhibit price list of medicines ‘stocked and sold’ by wholesalers and retailers under Form V as per Drugs and Cosmetics (D&C) Act, 1940. But distribution of such price lists to each wholesaler and retailer by the pharma companies will be a tedious, unviable and expensive task, stated the BCC&DA secretary.

Hence BCC&DA views that a convenient and simplest way to obtain the PPIS would be to approach for the pharma companies to publish their products price lists via an advertisement in the periodical magazines brought out by the chemists & druggists association to keep its fraternity posted on the latest developments.

“Such modes of communication via a printed medium that is circulated to all the pharmacy wholesalers and retailers is a hassle free process. It could provide all the updates periodically avoiding all possible including interrogations by the drugs control departments on over-pricing too,” said Kumar.

From a BCC&DA perspective, we are hopeful that the pharma companies would continue to cooperate and provide the required support in the interest of ensuring cordial ties between trade and industry, he said.

“Our key objective now is to ensure the smooth functioning under this new trade norm issued by CII to the All India Organisation of Chemists & Druggists (AIOCD). The task on hand is to make sure hassle free processes of not just payment terms from the wholesaler to pharma companies but collection of  expiry dated and ruptured drug strips and bottles from the retailers. The reality is that, now the retailers are at the receiving end, informed Kumar.

While the profit margins remain unaltered under this new trading norm and will continue as 16 per cent for retailers and eight per cent for wholesalers, the big blow is the DPCO 2013 which reduces the maximum retail price (MRP) of 348 formulation. This would erode the profit margins. Despite the challenges, as a responsible Association, we would strive to ensure amiable relationship between trade and industry, said the BCC&DA secretary.