Refuting the comments and allegations made by a regulatory officer of the Kerala drugs control department that the reason for the failure of Kerala State Drugs and Pharmaceuticals Ltd (KSDP) in catering to the needs of state is due to its functioning under the industry department, both the chairman and the managing director of the firm have said that the regulatory officer may have hidden agenda to support private pharmaceutical companies.

They denied  the drug control officer’s comments as baseless and added that he was spreading false information.

Regarding the problems faced by the public sector firm today, Adv. U.A. Latheef, the chairman and K B Jayakumar, the managing director said the inordinate delay in releasing payments by Kerala Medical Services Corporation (KMSCL) through which supplies are effected to the state health department controlled healthcare institutions, is the only problem of the company. They said although KSDP is working under the industry department, it is referred as ‘the Kitchen of Health Department’ as it is supplying good quality medicines to the government run hospitals in the state from 1974.

“The supplies are effected through KMSCL which is under the health department. If payments are released on time, KSDP can progress much more than what is today. KSDP is solely meeting the demands of the health department and the regulatory officer who spreads the negative message may not know the fact. His viewpoint about HOMCO and Oushadhi is also incorrect as there are reasons behind their profitable running,” said Adv. U.A. Latheef.

A regulatory officer in the rank of deputy drugs controller, in an email to some English news papers, marking copy to Pharmabiz, had written that the government run manufacturing unit of ayurveda (Oushadhi) and the homoeo medicine production unit (HOMCO) came under the health ministry, so they were operating profitably and capable of meeting the demands of Ayush department. His finding was that KSDP can prosper well and the production of medicines can be increased to meet the requirement of the state if it is brought under the control of health department. Though the company is engaged in the production of drugs, it is controlled by the industry department.

“HOMCO, having latest infrastructure facilities, is having large marketing networks outside Kerala. Oushadhi has their outlets in each district in the state. Both of them are not solely depending on the government for their sales. In fact KSDP was started to purely to cater to the demands of the health department,” K. B. Jayakumar, the MD of KSDP pointed out.

According to the managing director, KSDP is working for the last 40 years and it is in the process of updating its technology, adding latest infrastructure and getting GMP licences for all items. Due to lack of GMP for some products, the company is unable to enter into neighbouring markets. But with full support from the industry department, KSDP is thriving very fast to achieve its goal. It has established a modern drug testing laboratory and a beta lactam injection plant at its premises in Alappuzha recently.

The industry captains claim that KSDP is earning profits every year from 2012-13 fiscal. During that period the company had a sale of Rs.14.24 crore. In the next fiscal, the revenue rose to Rs.21.23 crore and in 2014-15 the turnover was Rs.23.93 crore. In 2015-16 (upto December) the total revenue out of sale of products is Rs.25.37 crore, they said.