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Trade bodies in Kolkata up in arms against direct sale of drugs to patients by pharm cos
Peethaambaran Kunnathoor, Kolkata | Tuesday, June 14, 2011, 08:00 Hrs  [IST]

A section of accredited distributors of pharmaceutical products based in Kolkata representing All India Chemists & Druggists Federation, (AICDF) has demanded immediate intervention of state regulatory authorities to put an end to the direct selling of essential drugs to patients by certain manufacturing companies, violating all agreements.

According to the distributors, the direct sale of costly life saving medicines is a gross violation of the trade agreement signed between the manufacturers associations (IDMA and OPPI) and the traders’ associations. Major companies such as Cadila, Pfizer, Cipla, Aventis, Dr Reddy's and Novo Nordisk are indulging in this unlawful practices, they alleged.

“The companies supply their products to some particular wholesalers on invoices issued to a doctor or physician with a price cheaper than the actual MRP. The quantity of the drugs supplied is more than the actual requirement of the doctor and a price variation of 25 per cent is found between those supplied to the doctor’s invoices and those sold to other traders,” said Joydeep Sarkar, secretary of AICDF-WB.

According to him, in West Bengal over 40 per cent of the life saving formulations are sold through this unethical direct marketing sources. Sale of drugs for treating cancer and AIDS is the worst affected and the traders lose a margin of 25 per cent.

He said that more than 20 manufacturing companies indulge in this illegal business, making the traders bear a huge loss in the sale of products with identical label and batch numbers. This practice has been prevailing in the state over the years and it is done with the help of some doctors acting as intermediaries and medical representatives as supporters. He said these essential drugs are reached into the hands of consumers bypassing the accredited distributors and licensed retailers, which is against all rules.

Regarding benefit to patients, the distributors raise a significant question that if the companies intend to sell the medicines less than the actual MRP printed on the label, then why they cannot fix the discounted rate as MRP. What for the companies supply medicines on invoices issued on doctors' names when they need a certain quantity only. Where shall the patients get a valid bill for the medicines they buy, and if affected who is responsible. If the Manufacturers are  very much concerned of the ailing community and intend to provide medicines at lower price, then why they do not argue for bringing these formulations under the “Category” or “Schedule” products where profit is restricted, and NPPA has the control to monitor and determine the best actual price, the distributors asked.

Without the involvement of retail chemists, the drugs are given to the patients by a medical representative on prescription of some doctors who enjoy benefit directly. The doctors while prescribing the medicines give the contact number of the medical representative or staple his visiting card over the prescription or directly introduce him to the patient. Later on the medical agent approaches the patients and hands over the drugs at their door steps, after collecting it from the particular distributor. Here the wholesaler or the retail pharmacists have no role, alleged Joydeep Sarkar.

He said medicines in the segments of orthopaedic, nephrology, cancer, Aids and urology, where the prices are too high and the treatments are life long, manufacturers initiate this illicit practice by framing a consolidated nexus between doctors and medical representatives. This malpractice can also be seen in cases of devices and high value injectables. According to him, doctors are entitled to buy medicines only the adequate quantity required for supply to their own patients.

Warranting strict action against all kinds of violations by any company or institution or association, the drugs control director, Dr Chintamony Ghosh said he has formed a Special Task Force under an Assistant Drugs Controller for proper monitoring of the entire marketing of drugs by various companies in the state. In addition to this, a ‘bulk SMS complaint cell’ involving all the stake holders will be introduced soon to find out anomalies in the management of drugs and for proper regulation.

Comments

Animesh Roy Jun 17, 2011 11:05 PM
After doing so high investment in the manufacturing sector ( which in turn helps in developing economy ) to day manufacturers ( particularly SME sector are not in a position to retain even single digit profit % while the traders are getting huge margin Distributores - on an average 10% and the retailers 20%. + other trade benefits without any risk ( since sale of any pharma formulation is manufacturers responsibility . if the trade margin is reduced patients can get medicines at cheaper rate . More over traders associations are restricting manufacturers to market their products by various means . Some times we ( manufacturers ) wonder that even after producing medicines ( own brands ) we are at the mercy of the traders to market our products .
s ravichandran Jun 14, 2011 9:11 PM
if there can be 10% reduction in direct supply to patient of a costly injection of Rs 15000/- it gives a saving of Rs 1500/- .defenitely from patient point of view it is a welcome step
JOYDEEP SARKAR Jun 14, 2011 10:28 AM
The Companies involve in Direct Sale of Drugs to the Patients do not allow their common traders to get the said medicines or formulations directly from the depot of the company or their C & F A, which attracts the violation of Sec 18 of DPCO too.

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