In a recent crackdown by the state drug regulator to end cartelisation of drug trade, Maharashtra Food and Drug Administration has canceled the wholesale license of Bhiwandi based Mihir Enterprises, C&F of Mankind Pharma for selling medicines at retail price to Andheri based stockist Northwest Pharma Hub in violation of Drugs and Cosmetics Act (D&C Act) and Drug Price Control Order (DPCO) 2013.

The new DPCO clearly defines Price to Retailer (PTR) which can be offered by the manufacturer above 16 per cent and the final MRP of the drug factors in 16 per cent to the retailer as per new DPCO 2013. Manufacturer can offer Price to Stockist (PTS) in the range of 8 to 10 per cent. Previous DPCO order regulated drug prices based on the manufacturing costs stated by their manufacturers. Competition Commission of India (CCI) had also imposed heavy penalties on pharma trade bodies ranging from 5 lakhs to 47 lakhs over a period of one and a half years for controlling the trade and hampering the supply of medicines to patients in retaliation to the new DPCO.

Says Ganesh Vakhariya, Assistant Commissioner, Thane, "Most of the pharma manufactures have their godowns based in Bhiwandi and the business used to be carried out by a handful of stockists in connivance with the trade bodies against the new DPCO. Around 10 such cases are still subjudice in the court against the new DPCO which mandates a trade margin of 8 per cent to wholesalers as against 10 per cent earlier. Cancellation of license of Bhiwandi based Mihir Enterprises is the latest crackdown to curb the practice of selling medicine at PTR rather than at PTS in violation of DPCO."

FDA Commissioner Mahesh Zagade had also appealed to the pharmacists not to resort to unfair practices, cut corners and hamper the consistent supply of medicines to healthcare institutions in the wake of CCI order against All India Organization of Chemists and Druggists (AIOCD) in the month of June last year. He had also lashed out at AIOCD for hiding facts and figures about the CCI order with the pharmacists, manufacturers, wholesalers and stockists. This he emphasized based on his meeting with the manufacturers last year, who were taken on board by the FDA in the wake of short supply of medicines due to cartelisation.  

Prices of 652 formulations spanning over 27 therapeutic classes are regulated by DPCO 2013.