Monday, September 23, 2013

India - Drug Companies to Raise Trade Margins

MUMBAI: Shortage of essential medicines on retail shelves may be over soon with major companies like Cipla, Mankind Pharma and Torrent deciding to give in to the demand of higher trade margins and hoping to end the stalemate between the industry and chemists. Drug major Cipla and Mankind Pharma decided on Friday to increase the trade margins to 10% to stockists and 20% to retailers on the price-controlled basket of drugs, as against the earlier offered 8% and 16% respectively, while others like Torrent and Eris Lifesciences are doling out a 5% special discount'' on these medicines to stockists.

Since the implementation of a new pharma policy in July, a tussle has been on between pharma companies and trade over margins, with stockists reducing their drug orders leading to scarcity of widely-prescribed medication like painkillers, anti-infectives, cardiac and antibiotics.

Supplies of these medicines which are part of the national list of essential medicines (NLEM), have been particularly disrupted in states including Gujarat, Karnataka, Tamil Nadu, West Bengal and Jharkhand.

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