Temporary drug shortage likely once DPCO in force

DPCO 2013 comes into effect from July 29 regulating prices of 151 formulations whose price was fixed on June 14

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As the new Drug Price Control Order 2013 comes into effect from July 29, there is a lot of apprehension amongst chemists about a temporary shortage of medicines that have been listed under the pricing control order.

The National Pharmaceutical Pricing Authority (NPPA) has fixed prices of 151 formulations including popular ones like insulin, dexamethazone combinations, ibuprofen, metronidazole combinations etc, on June 14 giving a 45-day window for pharmaceutical companies to implement the same. As the 45-day period comes to an end, several chemists actually fear that there would be a shortage of these drugs in the market as most pharma companies are yet to replace the entire batches of medicines with the revised MRP.

Jashvant Patel, president of the Federation of Gujarat State Chemists & Druggists (FGSCDA) said, "There definitely would be a shortage of these medicines in the market as most manufacturers are yet to replace the old batches with the new ones having the revised pricing. We have sent these batches back to the manufacturers already. Also, we cannot sell the old medicines at the new price as that would have severe impact on our margins, as we have bought them at earlier prices."

Kamlesh Patel, chief executive officer of West Coast Pharmaceuticals, a Gujarat-based formulation maker said, "Actually the 45-day window is very short if one considers the logistics involved in getting the old batches of medicines back and then re-labelling them. Several manufacturers have drugs distributed all across the country. Also, re-labelling itself is difficult as the pack already contains the old MRP printed on it." He feels that the new pricing should have been made mandatory on the new batches of medicines that were manufactured after the DPCO 2013 was notified, making things easier for manufacturers. Patel too claims that in the current scenario, a temporary drug shortage is likely in the market.

Chirag Doshi, a senior official of the Indian Drug Manufacturers Association-Gujarat chapter too echoed the same concern adding that the mode of implementation of the DPCO is quite impractical. "If a company has all-India marketing network, it is practically impossible for it to recall all the batches of medicines currently under circulation in the market within such a short time. Added is the cost of transportation, which is huge. Moreover, to replace the entire existing packaging with new MRP is cumbersome and will result in huge wastage of medicines."

Meanwhile, the state drug regulator's office has already taken steps to ensure that no medicine is sold at a higher price than what is fixed by the NPPA. H G Koshia, commissioner, Gujarat Food and Drug Control Administration (FDCA) said that the FDCA has taken all necessary steps to ensure that the drugs are sold as par the new pricing regime. Information has been sent to all district level drug inspectors who will closely monitor the sales of these drugs.