People's Democracy(Weekly Organ of the Communist Party of India (Marxist) |
Vol. XXXVII
No. 43 October 27, 2013 |
Populism of Cheap Variety
Partha Ray
‘OUR
fair price medicine
shop models are being replicated all over the country. We have
introduced the
concept so that the poor people can avail medical services at
lower costs’ said
chief minister Mamata Banerjee while addressing a rally at
Sarisha in South 24
Parganas on 11th September 2013.
This is
a false claim indeed.
Establishment
of Fair Price
Medicine shops has not addressed the basic issues of
affordability or
accessibility of essential medicines. On the contrary, it has
ensured high
profitability for select individuals, whom the government has
given land, water
and support to open medicine shops in the premises of
government hospitals.
These
government-supported
chemist shops are selling Branded Generics with a discounted
price. These
discounts are nothing but hoax and are offered to make fool of
common people.
HIGH MARGIN
BRANDED GENERICS
Branded
generics are unique
invention of Indian pharmaceutical industry. Unlike typical generic
medicines, these branded generics carry brand (proprietary)
names and print MRP
which is, at times, higher than certain medicine brands.
These
branded generics offer
high margin. The fair price medicine shop owners, empowered
and sponsored by
government of West Bengal, are
selling
branded generics in the premises of the major government
hospitals in a
monopoly kind of way (as the doctors are made to write generic
and patients are
lured with high percentage discount).
Here
is an estimate of
margin in Branded Generic (from an article by G L Singal, Arun
Nanda, Anita
Kotwani, Indian Journal of Pharmacology, April 2011, Vol. 43, Issue 2)
One
can note with surprise
that a retailer sells a branded generic medicine even at a
rate 11 times higher
than the rate of purchase. When a retailer purchases 45
strips of Cetcip
(branded generic made by Cipla) at Rs 100 from wholesalers,
he sells these
strips to the patients at Rs 1125 and earns, approximately,
Rs 1025. Whereas,
when the same retailer buys Rs 100 of same medicine
(cetirizine) of the same
company (Cipla) as a brand (Alerid), he sells it at Rs 130.
The
Table 1 shows that
branded generic medicines generate extraordinarily high
return on investment
for a business to be known as fair business. These prices
are predatory prices
and offer extremely high profitability for certain
retailers, including the
fair price shop owners. The tables above also give us
suggestion about the
extent of profitability and plunder by the pharmaceutical
companies in branded
medicines.
HOW FAIR ARE
FAIR PRICE SHOPS?
The
Table 2 gives comparison
between the fair price shop prices and branded generic
prices and explains the
above contention that even after giving discount at such a
high rate fair price
shop owners are making fabulous profit.
Branded generic:
Fair Price Shop and Branded
Generic Wholesale
Active Pharmaceutical
Ingredient (API) |
Brand name (fair
Price shop) |
Company 1)Mkt. by 2)
Mfd. by |
Name of the fair price
Shop
|
Pack, Strength MRP
(Rs.) |
Price to Patient after discount
(Rs.) |
Brand Name (Generic wholesale)
|
Company
1)Mkt. by
2) Mfd. by
|
Pack, Strength
MRP (Rs.) |
Price to retailer (Rs.) |
A retailer buys Rs 100 of this
medicine, parts discount and
sells at |
Domperidone |
Dombax-10 |
1)Ranbaxy 2) Pro Lab |
MS Life Drug House
(SSKM) |
10mg 10’s 27.59 |
09.04 discount 67.25% |
Vomistop |
Mkt. by Cipla Ltd. |
10mg 10s Tab 33.00 |
3.80 |
Rs 284
(after
parting
67.25%
discount) |
Albendazole |
Lupibend |
1)Lupin Ltd. 2)Akums Drugs
& Pharmaceuticals Ltd. |
MS Life Drug House (Medical
Collage) |
400 mg 1’s 13.00
Each Tab 13.00 |
04.39 discount 66.25%
Each Tab 04.39 |
ZeeBee-Alu |
1)Ranbaxy
2) Syncom Healthcare |
400 mg 10 Tab 137.30 Each Tab
13.73 |
16.75 Each Tab
01.67 |
Rs 277
(after
parting
66.25%
discount ) |
Pantoprazole |
Pentaloc -40 |
1)Not mentioned 2)Cadila |
MS Life Drug House (SSKM)
|
40 mg
10s’ Tab 52.70 |
17.26 discount 67.25% |
Pantosec |
1)Cipla 2)Crescent Therapeutics
Ltd |
40mg 10s’
Tab 83.50 |
9.50 |
Rs 288
(after parting
67.25%
discount ) |
All the
prices are collected by way of direct purchase of
medicines from Fair Price
Medicine shops and branded generic wholesale.
As the MRP differs, so
the margin differs. The
example of Pantoprazole is very fascinating. When a
medicine retailer (chemist)
buys Rs 100 of Pantoprazole from generic wholesale and
sells it at fair
price shop’s price (Rs 17.26) the sale
value becomes Rs 182 but when he offers the fair price
shop’s 67.25 per cent
discount, he is able to sell it at Rs 288
(approximately). The above examples
show how fair the prices, in the fair price medicine
shops, are. NOT A
MODEL
TO
REPLICATE Ms Banerjee claims that
Cefixime,
an antibiotic, is
sold at a price (Rs 93.47) 935 per cent higher than the
price claimed by Kaiser
Pharma for its brand Cefstat and 1206 per cent higher
than a brand named C Fax
of Alar Lab Ltd. Amoxicillin and Clavulanic acid
combination named co-symoxyl
(antibiotic) of a multinational company (which always
sells highly profitable
medicines at high
prices) named Abbott
Healthcare is available at
nearly half
the discounted price of
fair price
shops. Similarly, ‘fair price’ Tramadol (for pain) is
three times more
expensive than the Tramadol brand of Elder Pharma Ltd.
(Brand name: Opi Ot).
TNMSC price of omeprazole is one-ninth the price charged
at fair price shops
and Ocade, a brand of omeprazole (Cascade-India) is
available at one-seventh
the price offered, after discount, by fair price shops.
Instead of
spending on this
public-private partnership, had the government of West
Bengal spent some amount
of money for purchase of medicines through open tender
then, with some
reasonable amount of fund allocation, people of the
state would have been able
to get medicines free of cost from government health
facilities. Tamilnadu
example shows that little amount of per capita fund
allocation can be of great
benefit to the people.
Table 3. Price:
Fair Price Shop, Jan Aushadhi,
RMSC, TNMSC, PSUs,
Branded Medicine
Generic
Name |
Name
of
Fair Price
Medicine Shop
|
Pack,
Strength
MRP (Rs.) |
FPMS Selling
Price after discount
(Price to Patient) (Rs.) |
Jan Aushadhi
Price, Aug 2013; MRP
/Unit
(Rs.)
|
RMSC
Ltd. Purchase
rate (Rs.) |
TNMSC Ltd.
Purchase rate 2012-13 (Rs.) |
PSU
Prices
(Rate
Contract
till 31/03/12) |
Low
Priced Brand (Brand, Company) MRP
(Rs.) |
Albendazole |
MS
Life Drug House Pvt. Ltd Medical Collage |
400
mg
1’s
13.00 |
04.39
Discount 66.25%
|
400mg
Tabs 10's 14.83 |
400mg
Tabs 10's
6.28 + VAT
|
400mg
Tab 10
X 10's 57.51 |
------- |
Albent
400mg Tab
10’s 10.00 Acto
Pharma Lab
|
Pantoprazole |
MS
Life Drug House Pvt. Ltd(Medical Collage) |
40mg 10’s
tab 68.00 |
22.95 Discount 66.25% |
40
mg Tabs 10's 11.00 |
----- |
40
mg Tab 10
X 10's 45.63 |
------ |
Pensod
100
tab 40.00 Effect
Biotech Dacid
PZ 100
tab 40.00 Destin
Lab |
Cefixime
|
Distributors Purulia |
200
mg Tab
10’s 230.00 |
93.47 Discount 59.36
% |
Tab
200mg 10's
52.00 |
200mg
Tab
10’s 24.15 |
----- |
200mg
Tabs 10x10 635.00
HAL
, KAPL |
C
Fex 200 mg 200
Tab155.00 Alar
Lab. Ltd Cefstat
200 mg 10’s 10.00 Kaiser
Pharma |
Amoxicillin +
clavulanic acid |
Purulia |
500
mg
+ 125mg
cap 6’s 265.00 |
107.70 Discount 59.36
% |
500
mg +
125 mg Tabs
6's
54.00 |
100 (10
Stp. of 10’s) Tab 430.00
+CST 2% |
----- |
------ |
Co
Symoxyl
Tab 500
mg + 125mg 6's 65.00 Abbott
HC |
Atorvastatin |
MS
Life Drug House Pvt. Ltd (Medical Collage) |
10
mg 10’s
Tab 96.00 |
32.40 Discount 66.25% |
10mg
Tab 10's
9.00 |
---- |
10
mg Tab 10
X 10's 21.40 |
------ |
Atone
10 mg 200
Tab 42.00 Ethix
HC Ltd Genxvast Tab 10’s 12.00 Hetero
HC Ltd |
Omeprazole
|
MS
Life Drug House Pvt. Ltd (Medical Collage) |
20
mg 10’s
Cap 75.00 |
24.57 Discount 67.25% |
20
mg Tabs 10's 7.36 |
----- |
20
mg Cap 10
X 10's 26.15 |
---- |
Ocade
20 mg 100
Tab 35.00 Cascade-India Lexcid
Tab 10’s
04.00Lexus India |
Tramadol
HCL |
Purulia |
Inj.2
ml. (50 mg/2ml) 25.00 |
10.00 Discount 59.36
% |
Inj.
1 ml (50
mg)
9.45 |
Inj. (50
mg /ml) 2 ml. 1.77
|
------ |
Inj(50
mg/ ml) 5x 2ml
Amp 46.16
KAPL
|
Opi
Ot (50
mg/ml) 1ml
03.00 Elder
Pharma Ltd. |
Data compiled from the price
lists & other relevant
documents of RMSC
(Rajasthan Medical
Service corporation) Ltd., TNMSC( Tamil Nadu Medical
Service Corporation) Ltd ,Jan
Aushadhi , Public Sector Unit(PSU)’s and www.mydawaai.com
PROMOTION
OF PRIVATE
SECTOR The
department of health and
family welfare, government of We need to
know if this
government has any obligation for promoting the business
of its Private Sector
Partners (PSPs) . Essential
medicines are no
longer available free of cost at government hospitals
today. During the entire
period under Left Front rule, essential medicines were
distributed to common
people free of cost. In the 1980s and 1990s around 132
types of medicines were
available at the hospitals in the state. This number
dropped to 70-75 by the
end of 2010. Now,
essential medicines are
not freely available at government hospital drug stores.
Absorbent gauze,
absorbent cotton, cotton bandage, syringe, infusion
equipments, orthopaedic
dressings, plaster etc. were always provided free of
cost in the past by
hospital authorities. Presently, a patient is asked to
purchase these materials
and medicines from a fair price shop. This
government is spending
money wastefully in organising feasts and festivals,
whereas the ailing
millions in the state continue to suffer in distress.
Should any sensible
government shed its responsibility about healthcare?
This state government
does. It is pampered by big business, and dares to wash
its hand off healthcare
responsibilities. NO QUALITY MONITORING Unlike the
close monitoring
of medicine quality or standard in Tamilnadu, medicines
sold at the fair price
shops in Amoxicillin
(strip of 250mg
Caps.,10’s), when purchased with the strength of a
prescription written in
generic name, a brand was supplied by fair price shop
(MS Life Drug House Pvt.
Ltd., SSKM, Kolkata; Invoice No :SSKM -24832, Date :
21/04/13). The brand name
Mormox is printed boldly in the strip. On the strip of
this medicine, again, it
is printed that the medicine is marketed by Pharma
Concept, When
Metronidazole 400mg was
purchased (Invoice no and date:MED 145473 &
16/09/2013) , providing
prescription in generic, from MS Life Drug
House Pvt. Ltd. Medical College, Kolkata, a brand
‘Denagyl’ was supplied. We
have heard that generic can alleviate all woes, so we
wanted to purchase a true
generic. Our epitomised desire was sorely defeated.
Besides, we found an
exquisite knowledge that the said medicine is being
simultaneously
‘manufactured in If this is
not so, then, as
one can easily guess, it is possible that ‘U.K’ has been
printed instead of
U.P, or names of two simultaneous manufacturers have
been mentioned, by
mistake. Such mistakes and lapses (regarding the
statement about manufacturera)
are in print and on record. The
concerned manufacturer
knows quite well that they can be held responsible by
the authorities for
providing such misleading or, at least, incorrect
information. But still, it
appears that, they do not care. If they are
so casual or so
careless in relation to issues on record, then it is no
wonder that their
unrecorded activities during the process of manufacture
can very well be
equally careless or even more irresponsible. The
percentage offered at
fair price shops varies from place to place. In National
Medical Collage and
Hospital, Kolkata, it is 66.25 per cent. In It is
further surprising
that the percentage offered by the same shop belonging
to the same owner also
varies as the premises
changes. MS Life
Drug House offers differential discount at
This is a
riddle worth
solving. AVAILABILITY OF ESSENTIAL MEDICINES Even though
the government
of Besides,
many of the most
essential medicines required in a tropical country like
ours are not listed in
the mandatory list. Therefore, fair price shop owners
are at liberty not to
stock and supply them. Taking
advantage of the
anarchy in the list and freedom of selling any and every
medicine they choose,
fair price shop owners are selling highly-profitable
inessential and irrational
medicines. The list of
142 mandatory
medicines do contain certain medicine that is not
considered as essential as
per National List Essential Medicines (NLEM), 2011. On
the other hand, some
essential medicines included in NLEM 2011 do not feature
in this list. The
medicines like Aceclofenac Gel, Cough Syrup, Ofloxacin
& Ornidazole
combination Tab., Vitamin B Complex (with Vitamin C)
Caps. did not get place in
NLEM 2011, but got listed
in this
mandatory list. Some of these medicines like Cough Syrup
or Vitamin B
Complex Caps.,
are widely and also
wisely, considered as inessential medicine and not worth
enlistment. A medicine
like Ofloxacin-Ornidazole combination is not famous
enough as rational
combination of medicine. Certain medicines which
were dropped after
careful consideration from the National List Essential
Medicines (while the
NLEM 2003 was updated during preparation of NLEM 2011)
also feature in this
specified list prepared by the state government. These
dropped or deleted
medicines are as follows: Aminophylline Inj., Menadione
tab. and Inj.,
Pentazocine Lactate Inj., Theophylline Tab.
Aminophylline also features in the
‘Consolidated List of Products Whose Consumption And/or
Sale Have Been Banned
,Withdrawn or Severely Restricted or not Approved by
Governments, eighth issue’
published by United Nations. Keeping stock of such
medicines should be
disallowed, not the amazing opposite. This state
government requires to justify
the presence of these medicines in the mandatory list. Certain
essential medicines
featuring in NLEM 2011 are not listed by the state
government. Even though,
malaria, filariasis, tuberculosis, leprosy or AIDS (HIV)
are among the
most significant
disease burden in the
state as well as in the country, none of the medicines
for these diseases have
been enlisted in this mandatory list prepared by the
state government.
Anti-leprosy medicines like Dapsone and Clofazimine has
not been listed
(Central Medical Store in Asking
valid questions is an
invitation to rouse the anger of the chief minister and
her regulars. Asking
reasonable question is not considered as a good habit in
the state of