Karnataka is facing an acute shortage of essential drugs as chemists in the state are refusing to stock the drugs because of a slash in the trade margins allowed in the DPCO 2013 enforced from May 15, 2013.

The companies were given 45 days to repack the new prices but now retailers are refusing to source the drugs they insist on 20 per cent margins as against the present 16 per cent which is a reduction of four per cent. The wholesalers too are not sourcing from companies because their margins are now slashed too by 1.5 per cent as against the required 10 per cent.

The shortage of some drugs including losartan potassium with popular brands like Losar and Repace prescribed for blood pressure and Gardinal tablet for epilepsy is imminent as they are not on the shelves of 22,000 chemists in the state.

“This is a serious concern and we wish the trade associations calls for a discussion with the manufacturers to sort out the issue of margins and put an end to the inconveniences caused to patients,” D A Gundu Rao, president of Karnataka State Pharmacy Council told Pharmabiz.

Products like losartan potassium and Gardinal are wonder drugs and patients with chronic conditions have adjusted to these drugs. The shortfall of these drugs will only add to the woes of the sick, he added.

“The only way to come out of this situation would be to see that manufacturers comprehend our situation and call to restore the margins as this is only going to hamper not just our sales but revenues of the pharma companies too following the reluctance to sell these drugs by pharmacy outlets,” said a section of chemists in Bengaluru.

According to pharma companies in the state, the shortage of drugs following the DPCO 2013 was anticipated and the government did not comprehend the difficulty of recall and re-label of the drugs within 45 days. The chemist shops are located in far flung areas of the country and to summon up the drugs to their companies’ premises is a herculean task. Now the chemists are upset over the margins. We are also in trouble as our sales revenues indicate negative growth.

The government does not understand the current rising costs in the wake of inflation. When margins are slashed our survival is put to test. There are many chemists in the state who wish to stop the business and move on to other trades. But this is not possible at a time when the Indian economy is facing a slowdown and with the growing prices of food and other essentials, there is no one to come to our succour, pointed out chemists.

Dr B R Jagashetty, drugs controller, Karnataka said that so far there were no complaints on shortage of drugs by the public as per the report from his officers. However, an emergency meeting has been called to look into the  matter immediately.