The association has also independently requested the pricing authority to re-think its decision.
The recent drug price revision will lower the distributors’ and retailers’ margins from 10 per cent to 7.5 per cent and 18 per cent to 12.5 per cent respectively, estimated P. Elango, General Secretary of the Association.
To comply with the new Drug (Pricing Control) Order 2013, the pharmaceutical manufacturing firms will need to send a revised pricing list to all distributors and retailers, which is quite impossible since most manufacturers route their goods via stockists and are unaware of which retailer is selling their products. Also, the giant drug recall operation will involve repackaging and re-labelling of the medicines; an indeed time consuming task for the manufacturers. However, the NPPA had fixed July 29 as the deadline for pharma firms to send back repackaged drug parcels with revised prices.
Elango feared that, there could be a supply shortfall of some high cost premium brands since the distributors and retailers from both cities and the suburbs keep limited stocks. Moreover, the manufacturers are in doubt whether the existing stocks can be sold at current prices, said T.R. Gopalakrishnan, Technical Advisor, Indian Drug Manufacturers Association.