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Impasse between drug firms, retailers continues


The ongoing feud between drugmakers, including GlaxoSmithKline and Cipla, and retailers in India over trade margins has resulted in lower supplies of some medicines, reported Business Line.

In a letter to State authorities, Dilsher Singh Kalha, secretary of the Department of Pharmaceuticals, noted that traders are insisting on a margin of 10 percent for wholesalers and 20 percent for retailers, which they charged when the medicines were not under price control.

Citing letters addressed to manufacturers, he says the trade association has also asked members not to deal in medicines of manufacturers not agreeing to those requested trade margins.

If the dispute persists, the issue could also come under the government’s anti-competition lens, according to pharmaceutical industry representatives.

GlaxoSmithKline stated that «it has come to our knowledge that in the major pockets of the country our products are not being purchased by the trade from September 15, 2013." Sales will be affected, a company source said, adding that the East and North Eastern markets were particularly affected.

Ranbaxy’s sales have also been affected in parts of the country, the company said, adding that they had received complaints from patients.

Source: firstwordpharma.com

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