Chemists Association Raises Alarms on Anomalies in Drug Price Control

A deeper dive into the methodology of calculating ceiling prices in Para 4 and 6 unravels an unscientific approach.

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Last Updated on December 31, 2023 by The Health Master

Drug Price Control

In the ever-evolving landscape of pharmaceuticals, the Suvarna Karnataka Chemists and Distributors Association (SKCDA) has sounded a clarion call to the Department of Pharmaceuticals on Anomalies in Drug Price Control.

The issue at hand revolves around the anomalies embedded in the Drugs (Price Control) Order (DPCO), 2013, prompting SKCDA to address the discrepancies head-on.

Anomalies Unveiled: A Critical Examination

Maximum Retail Price: [2(r)] – An Incomplete Picture

The SKCDA has scrutinized the wording of [2(r)], revealing a sentence that seems incomplete, leaving room for confusion and misinterpretation.

Para 2(u): A Clash of Definitions

The definition of new drugs in Para 2(u) raises eyebrows as it diverges from the one in Para 32(iii) explanation, creating a discordant note in the regulatory symphony.

Unscientific Pricing: The Crux of the Matter

A deeper dive into the methodology of calculating ceiling prices in Para 4 and 6 unravels an unscientific approach.

SKCDA contends that this method seems more favorable to manufacturers than consumers, allowing for the fixing of high prices based on inflated existing prices.

The Perils of Current Price Fixation Methods

The association asserts that despite fixing prices for numerous essential drugs, the process lacks fairness.

It seemingly aids manufacturers rather than safeguarding consumers, as manufacturers can exploit inflated prices to set higher rates.

The result is a process that fails to deter companies from profiting at the expense of consumers.

Heroor emphasizes that the pricing methodology in Para 7 of the DPCO 1995 was scientific, evident in the market through the prevalence of ‘free goods’ and ‘bonus offers.’

These marketing strategies, such as Amitax 500 injection and Cardiforce injection, are indicative of the current inefficiencies.

Tackling the Menace: Spurious Drugs and Bonus Offers

SKCDA raises a red flag on the potential proliferation of spurious drugs due to the prevailing bonus offers.

The association advocates for an immediate halt to bonus offers, proposing either a ban or an increase in profit margins for retailers and wholesalers to discourage this practice.

In particular, Heroor suggests extending the profit margin to 25% for retailers and 15% for wholesalers, not only to curb the bonus offer system but also to include non-scheduled formulations.

Redesigning Definitions: A Step Towards Clarity

Para [2(zd)] comes under scrutiny as SKCDA proposes a revision of the wholesaler definition, narrowing it down to a ‘seller who sells only to a retailer.’

The removal of provisions allowing sales to hospitals, dispensaries, or educational institutions is also on the agenda.

The association further argues for the need to fix bulk drug prices, emphasizing their direct impact on retail prices.

To counteract free goods offers, SKCDA proposes a 25% margin for retailers and a 15% margin for wholesalers.

The Offence Clause Conundrum: Para No 14 Revisited

Heroor delves into the complexities of Para No 14, expressing concern that manufacturers are permitted to sell scheduled formulations without profit margins to wholesalers.

This, he contends, nullifies the very intention of the DPCO, rendering it ineffective.

Additionally, Heroor explores issues related to the recovery of dues, control of sale prices, and the revision of prices.

He highlights the need for stringent measures to prevent the selling of medicines in loose quantity, emphasizing the importance of maintaining price lists.

A Plea for Reform

In conclusion, SKCDA passionately urges the Department of Pharmaceuticals to address these pressing concerns promptly.

The association calls for a return to a more scientific pricing methodology, a crackdown on bonus offers, and a revision of definitions to restore fairness to the pharmaceutical pricing landscape.

Disclaimer: This article contains information derived from the source mentioned below. Our team utilized an AI language model to rewrite and present the news or article in a unique format.

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