Himachal pharma firms oppose cap on trade margins: The Tribune India
Solan, July 27
The Himachal Drug Manufacturers Association met with Minister of Health and Family Welfare and Union Chemicals and Fertilizers Mansukh Mandaviya in Delhi yesterday on the issue of streamlining trade margins ( TMR) on unlisted drugs which they claim is contrary to the desire to provide affordable drugs. to the sick. Unlisted drugs are not subject to price control.
The association’s chairman, Rajesh Gupta, said the minister had asked the officers to analyze their views on TMR and work to make the drugs affordable for patients. Issues such as the price of active pharmaceutical ingredients, which are their raw material, would also be considered.
Gupta explained, “There is a major flaw in the proposed formula because it discriminates against sales of branded generics versus sales of prescription drugs. In the case of prescription drugs, manufacturers’ representatives approach physicians and encourage them to prescribe their drugs while bearing all marketing costs. Drugs are charged at 65-70% of the maximum retail price and the reseller, retailer and wholesaler earn a higher price.
He said: “On the other hand, in the case of generic drug companies, the price to the dealer is one-third compared to prescription drugs. In the absence of any marketing infrastructure, they use that of the distributor. Patients sometimes receive discounts on these drugs from retailers to promote their sales.
Tier II cities, remote areas, inland and rural areas are covered by distributors rather than prescription marketing representatives. The proposed move will cap their trading margins. This will reduce the MRP of the generic drugs, which will affect their sales as distributors will not opt for them given the lower trade margins. This would defeat the purpose of making affordable drugs available, as these drugs would find no distributor.
This would affect 80% of micro-small and medium-sized businesses that survive through third-party manufacturing.
They asked to opt for “One nation, One molecule/drug combination, One MRP” for drugs falling under the national list of essential drugs in order to control exorbitant MRPs.
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