Drug firms may offer price balm in Kerala

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The Kerala Medical Supplies Corporation, the central drug procurement agency of the state government, will shortlist 2,000 essential drugs to be sold at reasonable prices through government-approved outlets.

The move comes in the wake of cancer and cardiac medicines being sold at astronomical rates.

The Kerala Medical Supplies Corporation managing director, Mr Biju Prabhakar, said that drug manufacturing companies had been asked to submit a list of fast moving essential medicines and the lowest possible prices they can offer and the quantity they can supply.

As many as 45 companies have already submitted the lists and 50 more are expected to follow suit.
An expert committee of Cochin University of Science and Technology (CUSAT) is examining the price and quantity of drugs to be offered by the different companies.

The panel will get back to the companies with the required alterations before finalising the rate list and the supply contract.

“Some of the drugs for treating cancer, nephrology, urology and cardio vascular diseases are being sold even 15 times more than the market price,” said Dr Prabhakar.

“Even insulin is being sold three times higher price. Our aim is to ensure reduction for products which are moving.”

He said the Medical Supplies Corporation has sought financial assistance of Rs 200 crore from the government to set up 250 specialist drug counters across the State.

The Medical Supplies Corporation aims to do business worth Rs 1,000 crore through these outlets, which provide drugs 15 per cent to 30 per cent less than the market rates.

While most of these drug companies are ready to cooperate with the government’s price control initiative, retailers are apprehensive about the move as they fear that the new system would affect their business volume.