Although the government has decided to increase the retail prices of Doxofylline, retailers disagree with the government decision 

The pharmaceutical industry is one of the largest industries in the global market. The Indian pharmaceutical industry is one of the rapidly growing markets in this domain in the world. It is estimated that the domestic retail market will earn more than US$10 billion in 2010 and further climb up to around US$12-13 billion by 2012.

Although the prices of drugs in the domestic market are controlled by the National Pharmaceutical Pricing Authority (NPPA), there is a difference in the retail prices of the same drug sold by different pharmaceutical companies. As a result, consumers have to shell out different amounts to purchase the same medicine. Therefore, NPPA should ensure that a standard retail price is followed for a particular drug by all drug retail companies across India. At the same time, NPPA should not make the prices of drugs too high, which will make it difficult for some consumers to purchase them.

“It has been noticed that retail prices of most medicines have been increasing of late. Yet, sales of the same has not being affected much, as medicine is an essential commodity,” says Neeraj Gupta, sales manager of Medico, a small-sized manufacturer of medicines and other medical products in Mumbai.

There are also certain drugs whose retail prices are increased by the Central government. Presently, the government is planning to increase the price of Doxofylline, an anti-asthma drug. However, manufacturers and retailers of the medicine are opposing to the government’s decision.

Govt and pharma companies at loggerheads

Ranbaxy Laboratories and Macleods Pharmaceuticals are dissatisfied with the rise in retail price of Doxofylline and have disapproved the government fixing the retail price for the drug. The retail price of Doxofylline was fixed by the government in November 2009. This move was made as the medicine is a derivative of Theophylline.

Although the government has already decided to fix the retail price of the drug, pharma companies in Mumbai have not begun to sell the drug at the revised price rate. On April 8, 2010, the case was heard at the Bombay High Court. The next hearing was scheduled for April 21, 2010.

“With the increasing retail prices of medicines and other medical products, many consumers are finding it very difficult to purchase life-saving drugs. In a bid to increase margins, consumer health is being compromised. Therefore, there is an immediate need to make drugs available for consumers at reasonable rates,” says Narendra Mehra, director of Nishant Pharmaceuticals, a small-sized manufacturer of medicines and other medical equipment in Mumbai.

Most pharma companies in Mumbai are refusing to accept the government’s decision. In fact, owners of pharma companies had filed petitions separately with the Bombay High Court in December 2009. According to them, Doxofylline does not form a part of pharmacopeia and therefore, cannot be considered as a part of the bulk drug schedule.

Despite the constraints faced by the domestic pharmaceutical industry, it will surely continue to generate revenues for the country as drugs are a necessity for all consumers.

Sabrina Mitchell