Dr Reddy's, Ranbaxy line up to sell low-cost drugs

Dr Reddy’s, Ranbaxy and a few other reputed drug companies are seeking empanelment in a government programme to sell unbranded low-cost drug to poor people, a government official said.

The Department of Pharmaceuticals will announce a list of drug makers and non-governmental organisations (NGO) next week to supply medicines to Jan Aushadhi, a new low-priced medicine store chain promoted by the Central government. As many as 76 pharmaceutical firms have evinced interest in being empanelled in the drug supply chain, the official said. Among NGOs, Red Cross is the only national-level agency that has shown interest.

Jan Aushadhi will source medicines at a very low-price, compared to the existing wholesale prices. “We have identified about 400 essential medicines to be supplied through Jan Aushadhi. All these medicines will be priced at least 50 per cent lower than the market price,’’ a senior government functionary who co-ordinates the sourcing business said.

"Companies that qualify the conditions set by the government will be allowed to supply medicines to the retail stores,” the official said.

The government intends to set up Jan Aushadhi — a generic drug store open round the clock in all districts of the country. It has already opened two stores in Punjab and Delhi and is in the process of opening more stores in north India.

"On February 20, we will open a drug store in the Gurgaon civil hospital. Three days later, two stores, in Panchkula and Mohali, will be functional. By March, we will have at least 40 stores up and running,” the official said.

The Central government employees consumer cooperative society popularly known as Kendriya Bandhar will be in charge of most of the stores in Delhi, it is learnt. State-level NGOs to be identified next week will manage the stores in other states. Meanwhile, the Andhra Pradesh government is planning to open Jan Aushadhi counters in its mobile clinics that visit villages on pre-scheduled dates throughout the year. Government officials feel that the mobile services can be of help to people who are under long-term treatment as they can ensure continued supply of low-cost medicines meant for diabetes, hypertension etc.