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The Central Drugs Standard Control Organisation (CDSCO) has directed the National Pharmaceutical Pricing Authority (NPPA) to take immediate action against MedPlus chain for its violation on creating a discount price war for medicines. This follows a series of letters by the Karnataka Chemists and Druggists Association (KCDA) pressing the NPPA to take action after the former provided proof of MedPlus video link.
In its communication, CDSCO highlighted that the indiscriminate and illogical discount price war resorted to by MedPlus chains of shops is a violation of the Drugs and Cosmetics Act. The representation letter received from NPPA is self-explanatory. In this regard, it is necessary to take immediate action and inform CDSCO thereafter.
We have been apprehensive about the indiscriminate, illogical discount price war indulged by the MedPlus chain shops which distributes the latest fixed dose combinations. These formulations are manufactured by local companies identified by the pharmacy chain. We pointed out that it was a serious breach of the Drugs & Cosmetics Act, said AK Jeevan, Hon. Gen Secretary, KCDA.
We informed the NPPA and all other concerned ministers in the government with regard to the promotion of and substitution of ethically promoted medicines which were manufactured at pharma plants at the behest of MedPlus. The medicines marketed by MedPlus are equivalent to the branded formulations and claiming 50 to 80 percent discount illegally, he said.
The letters from KCDA which was forwarded to all the ministries is now accepted and the CDSCO has responded favourably, said Jeevan in his note to all the officer bearers, managing committee members, president, and secretaries of the affiliate district associations among others.
Earlier to the NPPA chief, KCDA had shared video links of the interview of the MedPlus chief admitting they connect with manufacturers of leading brands and get such medicines alternatively manufactured from the same source. This is then marketed by MedPlus as over the counter products.
Jeevan in his correspondence to the national pricing regulator, said, “There is no provision in the Drugs & Cosmetics Act for substitution of a medicine prescribed by a RMP (registered medical practitioner). In fact, Drugs & Cosmetics Act has authorised only a 16 per cent margin to retailers. Anything above that offered as discount is impossible until and unless quality of medicine is compromised. It is worthy to note here that no sane marketing system will offer any discount, over and above the fixed margins as stipulated in the Drugs & Cosmetics Act and the Drugs Price Control Order. Therefore this activity is illegal. KCDA now requests NPPA to look into the issue and immediately take action.”
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