Following continuous refusal of supply of life-saving drugs to the authorized traders of West Bengal by certain manufacturing companies, the National Pharmaceutical Pricing Authority (NPPA) has sent show cause notices to Zydus Cadila Healthcare Ltd, Gujarat and to Beacon Pharmaceuticals, Kolkata asking reasons for violation of Para 18 of the DPCO.

The complaint in this regard was lodged with the NPPA by the Pharmaceutical Traders Association of Bengal (PTAB), which also sought the intervention of CDSCO and the state drugs control department into the matter. The national price regulatory agency has also sent notices to the C&F Agents of the companies asking for reasons for the refusal of supply.

Meanwhile, PTAB secretary Pranab Kumar Chakraborti alleged that the state branch of a national trade body is behind the stoppage of supply by certain companies and their C&F Agents. He said this dispute over supply has worsened the trade relation between the pharma traders and the manufacturing companies in West Bengal. During the last a few months, the PTAB has approached the NPPA several times against Zydus Cadila and Beacon Pharmaceuticals for violation of Para 18 of the DPCO, he said.

According to his complaints, the C&F Agent of Zydus Cadila, M/S Shimana has deliberately stopped supply of life saving drugs of the Fortiza & Corza division of the company to some authorized stockists. He said supply of medicines to Hindustan Medicals in Kolkata, a wholesaler associating with PTAB, was stopped in June 2010.

In a telephonic discussion with Pharmabiz, Chakraborti said, the C&F Agent of Cadila made excuses by telling that he had been threatened by a national trade body and its state branch, hence he stopped the supply. He further said a national trade organisation issued orders to companies and C&F Agents not to supply medicines to its non-members. Following the instructions of the trade body, the C&F Agent misguided the manufacturing companies.

Another complaint raised was against Beacon Pharmaceuticals, a local manufacturer, who also committed the same violation in the district of Burdwan where the company itself had wanted a wholesaler to take membership from a particular national trade body. Since the wholesaler was reluctant, supply of medicines was stopped by the company.

The PTAB secretary said his organisation would claim compensation from the companies for their unlawful activities which have caused immense loss to the stockists. “In most of the occasions, the manufacturers with the support of their local managers cause hardships to the traders, and to escape from the situation they put the blame on others. Such biased and inclined activities of the manufacturers are violations of the act. The malpractices cause for price hike of certain formulations which in turn make problems to the patients or the ailing community,” he said.

In yet another complaint to the state drugs controller, PTAB has written that the packing of the formulations of Cadila was not as per the section 92 and 96 of the D&C Act. Their C&F Agent is violating the provisions stated in Para 14 and 15 of DPCO in terms of newly introduced products making it  difficult to the wholesalers and retailers. The Agent is not mentioning drug licence numbers of the consignees in the invoices raised in the names of the drug licensees or authorized distributors, besides withholding price list of the new products to the chemists, so mentioned as mandatory in the para 14 and 15 of DPCO, the secretary of PTAB told Pharmabiz.