Government fails to rein in drug prices
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Consider this: A strip of six branded antibiotic tablets of Augmentin 625, costs Rs 270 at any pharmacy. Six tablets of a similar antibiotic, Maxikind, of another company sells for just Rs 80. Both tablets claim the same effectiveness, but the difference of Rs 190 in their cost raises questions in the consumer’s mind about the price anomaly, which is evident in many drugs from simple paracetamols to high-end cardiac drugs. The difference ranges from Rs 2-Rs 200 or even more.
The anomaly is due to the absence of government price control over most drugs, allowing branded drugs to set their own price which more often than not burns a hole in consumers’ pockets.
The Supreme Court has directed the government and pharmaceutical department to formulate a pharmaceutical policy at the earliest to make essential drugs affordable for the poor. Mr M. Venkateshwarlu, a pharmacist with a well known chain of medical stores in the city, said, “If a big company invents a particular drug and takes patent rights, the price of that drug will be higher than similar drugs of other branded companies because sometimes this big company sells the molecular formula to these drug manufacturers. Besides, prices also vary depending on the cost of manufacturing, middlemen involved, and marketing strategy.”
Mr Uday Bhaskar, secretary-general of All India Drugs Control Officers’ Confederation says there’s no justification for this abnormal price difference; manufacturers selling the drug at a high price do so to get a profit margin of 500-5,000 per cent. “There is no price control over most drugs. Only 75 types of drugs are included in the Drugs Price Control Order-1995 and new drugs haven’t been included,” he said.
Giving an example, he said, “Just 80 paise goes into manufacturing 10 nimesulide tablets, but the same are sold at Rs 34 per 10 tablets by a certain company. The government needs to put a cap on profit margin, and it shouldn’t exceed 200-300 per cent.”
Difference in prices of drugs
Cholesterol control drugs
* Ator 20: Rs 63/10 tablets
* Storvas 20: Rs 80/10 tablets
Cefixime drugs for bacterial infections:
* Mahacef 200 mg Rs 80/10 tablets
* Taxim 200 mg Rs 180/10 tablets
Antibiotics:
* Mega cv 625 Rs 72/6 tablets
* Maxikind 625 Rs 80/6 tablets
* Indclav 625 Rs 108/6 tablets
* Clauam 625 Rs 120/6 tablets
* Augmentin 625 Rs 270/6 tablets
Cardiac drugs:
* Ramicare Rs 90/10 tablets
* Cardace 5 mg Rs 123/10 tablets
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