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.

One response to “What happens when drugs are not under price control?

  1. The price control of drugs should based on production cost. The new pharma policy base on average maximum retail price of drugs available in the market is eye wash as the prices of drugs are already very high in comparison to their production cost. In fact, a hefty sum goes to doctors as promotional goods in the form of cash and kinds. The drugs may be categorized into three categories – 1. New drugs, 2. drugs with special storage conditions and, 3. other drugs. The maximum retail price should be capped with respect to production cost. It may be production cost plus 200% for new drugs, production cost plus 150% for drugs with special storage condition and production cost plus 100% for other products. There should be law to regulate free bees given to doctors by the Pharma companies under Drugs and Cosmetics Act.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s