Karnataka State Registered Pharmacists Association asks govt to bring generic drugs under price control
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Nandita Vijay, Bengaluru
November 27 , 2018
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The Karnataka State Registered Pharmacists Association (KSRPA) is now insisting that the Union government should look into the need to bring generic drugs under price control.
The drug price control order (DPCO) has effectively controlled the soaring prices of essential drugs. But at the same time, it has dismally failed to contain the day light robbery of poor patients by some large and small companies , especially by the non-scheduled drug manufacturers, Ashokswamy Heroor, president, KSRPA, said in his communication to the Union health ministry and Department of Pharmaceuticals (DoP).
The Para 9 of the DPCO monitors the price of scheduled generic drugs by way of ceiling price. But all generic drugs do not fall under the price control. While encouraging the industry to manufacture generics, the intent of the legislation is to strike a balance between supply of such drugs and the cost, he added.
Unfortunately, some manufacturers have made a habit to display an inflated MRP on the labels of generic drugs, blown up by several times more than the real cost. Practically, they print the MRP according to their whims and fancies but sell at a price on par with that of the branded counterparts. The retailers who get the stock at a minimal cost sell it at an exorbitant price, said Heroor.
Some of the examples are Nimesulide which is a generic tablet costing 9 paise each but is sold at Rs. 3.50. Cetrizine tablet costing 24 paise each is priced at Rs. 3.10. Similarly nimesulide plus paracetamol costing 36 paise is sold at Rs. 3.
Value added tax (VAT) is paid at the manufacturers point on the real cost whereas recovered on the blown up cost, thus deceiving the government, he said.
About 5 to 6 years ago, the Drugs Controller General of India collected information on such drugs with a view to control the MRP, but nothing materialised. In order to protect the gullible consumers against such exploitation, we call upon the DoP to revoke a blanket ban on the exemption granted under the DPCO for generics, he said.
Provisions may be made under the DPCO to sell generics at twice the MRP fixed for the branded one under Paras 8 and 11. Alternatively the definition of scheduled formulations for the purpose of Para 8 may be included on the lines of the definition given in Para 9 explanation. Further one paragraph exclusively to fix the MRP of generic drugs may also be included in the DPCO, said Heroor adding that he was hopeful that it would be done by the government at the earliest.
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