Following the footsteps of Mumbai-based Blue Cross Laboratories Ltd and Franco-Indian Pharmaceuticals Pvt Ltd, three more Mumbai-based pharma companies have also offered higher margins to the retailers and stockists than what has been mandated in the DPCO-2013.

Sources said that Mumbai-based RPG Life Sciences, Delcure Life Sciences and Modi Mundipharma have also agreed to the demand of the All India Organisation of Chemists and Druggists (AIOCD) to offer higher margin of 20 per cent and 10 per cent to retailers and stockists respectively.

According to the letter dated 30 August, 2013, TV Madhsudan, Deputy General Manager (DGM), Distribution states, RPG Life Sciences Ltd, "RPG Life Sciences Ltd have decided to give higher margin of 20 per cent to retailers and 10 per cent to stockists for all products irrespective of controlled/ decontrolled category on MRP and price to retailer respectively excluding VAT and excise duty. This will apply to all our invoices with immediate effect from August 30, 2013."

As per DPCO 2013, the retailers’ margin for all the scheduled (controlled category) products is 16 per cent on price, inclusive of excise duty. Earlier this was on MRP excluding VAT and excise duty. The stockist margin on controlled products was eight per cent excluding excise duty. The new price control order has reduced the net margins for retailers and wholesalers by four and two per cent respectively which the trade feels will not be commercially viable for them.

Mumbai-based Delcure Life Sciences will also be continuing with same discount structures on the Stock Keeping Units (SKUs) mentioned on DPCO, 2013 for the NLEM products. As per the letter, Girdhari Jha, manager distribution, Delcure Life Sciences states, "This has been decided to keep good relation with trade. This endeavour will be appreciated by all our valued customers in India as it will ensure availability of medicines at affordable price."    

Meanwhile, AIOCD will approach more companies in this regard very soon. “AIOCD is in the process of approaching other companies with similar demand like Alkem Laboratories, Sun Pharma, Lupin Ltd., Zydus Cadila, USV Ltd., Cadila Pharmaceuticals Ltd. and Torrent Pharmaceuticals Limited,” informed Suresh Gupta, general secretary, AIOCD.