What happens when drugs are not under price control?

A GLIMPSE  OF THE ‘FREE ’ MARKET:

WHAT HAPPENS WHAT DRUGS ARE NOT UNDER PRICE CONTROL:

Sl. No.	Name of Drugs	Drug Under price control	Lowest Price brand In Rupees and Manufacturer	Highest Price Brand In Rupees and  Manufacturer	Highest priced brand /lowest priced  x 100
Drugs for bacterial infections: like pneumonia, urinary tract infections
1.	Ofloxacin 200 mg	NO	Rs. 3.2 /Zo, FDC	Rs 31.0 / Tarivid, Aventis	969%
2.	Levofloxacin 500mg	No	Rs. 6.82 / Levoflox, Cipla	Rs 95.0 / Tavanic, Aventis	1392%
3.	Azithromycin250mg 1 tab	No	Rs 8.5/ Zathrin, FDC	Rs.39.14/ Vicon,Pfizer	460%
Drugs Used in Viral Infections Including HIV/AIDS
4	Zidovudine	No	Rs. 7.7	Rs. 53.52	695%
	100 mg1tab		Zidovir ,Cipla	Retrovir, GSK
Drugs Used in Heart Disease, Hypertension, High Cholesterol
5.	Amlodipine5 mg1tab	No	Rs. 1.51 Amlodac, Zydus Cadila	Rs. 6.0 Amlogard, Pfizer	397%
6.	Atenolol50mg1tab	No	Rs. 0.4 Ziblok, FDC	Rs. 2.45 Tenormin, Nicholas Piramal	612%
7.	Valsartan 80 mg	No	Rs. 5.90 Valzaar,Torrent	Rs. 41.0 Diovan, Novartis	694%
Drugs Used in Diabetes
8.	Pioglitazone	No	Rs. 0.99 Pio, Systopic	6.0 Piozone, Nicholas	606%
	15 mg1 tab
9.	Glimepride1 mg1 tab	No	Rs. 0.8 Glimestar, Discovery(mankind)	5.30Amaryl, Aventis	696%
Drugs Used in Cancer
10	Tamoxifen10 mg 1 tab	No	Rs. 2.7/Tamodex, Biochem	Rs. 20.0 /Nolvadex, ICI	741%
11.	Letrozole 2.5 mg	No	Rs. 9.9 Oncolet (Biochem	Rs. 181.5 Femara(Novartis	1833%
Drugs   for Psychiatric ailments:
12.	Risperidone 2 mg	No.	Rs.1.69 Respidon(Torrent)	Rs. 27.0 Risperdal Ethnor	1598%
Drugs for Metabolic disorders
13.	Risedronate 35 mg	No	50.12 Risofos (Cipla)	500 Actonel(Aventis	997 %
Drugs for Arthritis
14.	Leflunomide 10 mg	No	8.0/ Rumalet(Zydus Cadila)	44.0 / Arava (Aventis)	550%
Drugs for erectile dysfunction
15.	Sildenafil citrate100 mg	No	29.16	584	2002%
			Penegra (Zydus Alidac)	Viagra (Pfizer)

Source: MIMS INDIA, March 2006, CIMS: January –April 2006.

DOES THIS SITUATION CALL FOR GREATER REGULATION OR LESSER AS THE PHARMA SECTOR IS DEMANDING?

Some other Relevant References:

“ Firstly it was clear  Medicines cannot be left to the market and government regulation is essential. The fact that almost all the developed countries in the world have a very strict regulation of prices is enough evidence that governmental regulation is required.”

Regional Advisor, Essential Medicines,WHO South-East Asia Regional Office,New Delhi, in Summary of a workshop on “Medicine Prices in the SEA region” SEAR Pharm Forum,  December 2003, Chennai.

As a result of the costs of a single hospitalization, 35% of people fall below the poverty line. Out-of-pocket medical costs alone may push 2.2% of the population below the poverty line in one year. (India – Raising the Sights: Better Health Systems for India’s Poor, World Bank May 2001).

Global experience has shown that the introduction of a TRIPS-consistent patent regime for drugs in a developing country results in an across-the-board increase in the cost of drugs and medical services.  – EXCERPT FROM THE NATIONAL HEALTH POLICY 2002.

The decentralized Public health service outlets have become practically dysfunctional over large parts of the country… the supply of drugs by the State

Governments is grossly inadequate. (National Health Policy 2002)

2004 : the government investigated trade margins in 3 commonly used drugs, Nimesulide, Omeprazole, Cetrizine and found astronomical margins.

“Even if a 100% extra charge is levied at each stage, the price of the medicine must not increase more than four-five times of the production cost. We have found that it is 30 times more in some cases.” Minister of Chemicals Mr. Ramvilas Paswan.

2006 : The Government has yet to act on this information.

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