Health Alert
Should Competetion Decide the Drug Prices?
Let us first look at some of the prices of the same molecules sold under different brand names. The variation are miles apart. Some examples:
· Fexofenadine 120mg: one tablet of Alernex(Dabur) costs Rs.
5 while Allegra (Hoechest) is priced at Rs.8-the difference being 60%.
· Two brands of cetrizine are priced at Rs. 1.60 and Rs. 2.60 per
tablet : a difference being 62%.
· Gliclazide: Glidiet(Modi-Mundipharma) is priced at Rs. 31 (for
10 tablets) compared to Rs. 59 for Diamicron( Serdia) a difference of over 90% .
· Two brands of ofloxacin cost Rs. 100 for 10 tablets(Oflin by
Cadila Healthcare) and Rs. 530 for Tarivid (Aventis). The difference:530%.
· The difference in the cost of Riseperidone is beyond
imagination : Less than Rs. 18 for all manufacturers except Joh
nson& Johnson that costs Rs. 135! A difference of 750%.
· Amlodipine prices are widely different: Amlodac 10mg is
priced at Rs. 14 for 10 tabs while Amlovas of equal strength costs Rs. 35 for 10 tablets-gap of 250% .
There are scores of other examples. Since no manufacturer would be selling at loss, it is obvious that huge profits are being made.
Normally the sale of cheaper brands should not only be substantially more than costly brands but expensive brands die a natural death in due course.Let us look at the facts and figures:
v As per ORG figures, Cyclovir (Zydus) brand of acyclovir with the therapy cost of 812 rupees had a total sale of Rs. 57 lacs annually period compared to Rs. 3.17 crores for more expensive Herpex (torrent) brand( cost of therapy: Rs. 922).
v Diamicron(Serdia) brand of gliclazide at Rs. 59 for 10 tablets was worth Rs 7 crores against the cheaper brand that had a measly sale of Rs. 66 lacs(Glidiet of Modi Mundipharma). The medicine is to be taken for life.
v The most expensive brand of enalapril(Envas) sells hundreds of times more than cheaper but equally reputed brands including Cadila’s BQL! The cost difference is over 33%. It is a life long medicine.
Oblviously, doctors are oblivious of cost to patients. A more logical explanation is that doctors get easily influenced by manufacturers who have the capacity to spend large sums of money on aggressive promotion and offer huge incentives to “Right” prescribers. Some examples are :
Ø In the past eight years, a south Delhi based surgeon has been sent on vacation to Switzerland by a south Delhi base pharma company every year. In turn he prescribed only the obliging company’s products. In the case of antibiotics he went one step further. Instead of five to seven days, the patients were made to swallow the bitter pills for ten days.
Ø Johnson & Johnson that produces epoetin alfa ( life saving for kidney transplant patients ) was gracious enough to sponsor 300 kidney specialists to attend a 3 hour “scientific conference” in Singapore with stay extended to 3 days ! Needless to says spouses were also included. Result : Its brand has the highest sale.
Ø Ranbaxy sponsored the visit of about 400 prescribers to Bankok.
Ø Glaxo has given thousands of refrigerators to Chemists.
In India every doctor decides on his own which medicine to give. Not infrequently the choice is scientifically inappropriate and financially costly. Why does this happen? The matter needs to be debated. One of the solutions lies in controlling the profits on all molecules to the same class as well as other drugs used in the same therapeutic area. For instance, if the price of diazepam is fixed leaving other benzodiazepines uncontrolled, then prescriptions will shift to them.
Health Alert
Should Competetion Decide the Drug Prices?
Let us first look at some of the prices of the same molecules sold under different brand names. The variation are miles apart. Some examples:
· Fexofenadine 120mg: one tablet of Alernex(Dabur) costs Rs.
5 while Allegra (Hoechest) is priced at Rs.8-the difference being 60%.
· Two brands of cetrizine are priced at Rs. 1.60 and Rs. 2.60 per
tablet : a difference being 62%.
· Gliclazide: Glidiet(Modi-Mundipharma) is priced at Rs. 31 (for
10 tablets) compared to Rs. 59 for Diamicron( Serdia) a difference of over 90% .
· Two brands of ofloxacin cost Rs. 100 for 10 tablets(Oflin by
Cadila Healthcare) and Rs. 530 for Tarivid (Aventis). The difference:530%.
· The difference in the cost of Riseperidone is beyond
imagination : Less than Rs. 18 for all manufacturers except Joh
nson& Johnson that costs Rs. 135! A difference of 750%.
· Amlodipine prices are widely different: Amlodac 10mg is
priced at Rs. 14 for 10 tabs while Amlovas of equal strength costs Rs. 35 for 10 tablets-gap of 250% .
There are scores of other examples. Since no manufacturer would be selling at loss, it is obvious that huge profits are being made.
Normally the sale of cheaper brands should not only be substantially more than costly brands but expensive brands die a natural death in due course.Let us look at the facts and figures:
v As per ORG figures, Cyclovir (Zydus) brand of acyclovir with the therapy cost of 812 rupees had a total sale of Rs. 57 lacs annually period compared to Rs. 3.17 crores for more expensive Herpex (torrent) brand( cost of therapy: Rs. 922).
v Diamicron(Serdia) brand of gliclazide at Rs. 59 for 10 tablets was worth Rs 7 crores against the cheaper brand that had a measly sale of Rs. 66 lacs(Glidiet of Modi Mundipharma). The medicine is to be taken for life.
v The most expensive brand of enalapril(Envas) sells hundreds of times more than cheaper but equally reputed brands including Cadila’s BQL! The cost difference is over 33%. It is a life long medicine.
Oblviously, doctors are oblivious of cost to patients. A more logical explanation is that doctors get easily influenced by manufacturers who have the capacity to spend large sums of money on aggressive promotion and offer huge incentives to “Right” prescribers. Some examples are :
Ø In the past eight years, a south Delhi based surgeon has been sent on vacation to Switzerland by a south Delhi base pharma company every year. In turn he prescribed only the obliging company’s products. In the case of antibiotics he went one step further. Instead of five to seven days, the patients were made to swallow the bitter pills for ten days.
Ø Johnson & Johnson that produces epoetin alfa ( life saving for kidney transplant patients ) was gracious enough to sponsor 300 kidney specialists to attend a 3 hour “scientific conference” in Singapore with stay extended to 3 days ! Needless to says spouses were also included. Result : Its brand has the highest sale.
Ø Ranbaxy sponsored the visit of about 400 prescribers to Bankok.
Ø Glaxo has given thousands of refrigerators to Chemists.
In India every doctor decides on his own which medicine to give. Not infrequently the choice is scientifically inappropriate and financially costly. Why does this happen? The matter needs to be debated. One of the solutions lies in controlling the profits on all molecules to the same class as well as other drugs used in the same therapeutic area. For instance, if the price of diazepam is fixed leaving other benzodiazepines uncontrolled, then prescriptions will shift to them.
R.S.Dahiya
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