Mumbai, 28 Sept 2013: Shortage of essential medicines on retail shelves may be over soon as nine pharma companies in succession over the past two months have agreed to offer higher margins to the retailers and stockists against what has been mandated in the DPCO-2013. AIOCD has been in the process of approaching over 100 companies with similar demands over the past couple of months.
Taking cue from Mumbai-based Blue Cross Laboratories Ltd, Franco-Indian Pharmaceuticals Pvt Ltd, RPG Life Sciences, Delcure Life Sciences and Modi Mundipharma, Mumbai based Macleods Pharmaceuticals Ltd, Hetero Healthcare Ltd, Indoco Remedies Ltd and FDC Ltd will also offer higher margins of 20 per cent and 10 per cent to retailers and stockists respectively as demanded by trade body All India Organisation of Chemists and Druggists (AIOCD).
In a letter dated September 24, 2013, Rajeev Mishra, vice president, Field Operations and Distribution, Macleods Pharmaceuticals Ltd. informed that effective September 25, 2013 all our stockists and retailers shall get their trade margins on our products same as before implementation of new DPCO 2013. This in effect means no change in trade margins and all those products that have come under new DPCO shall continue to get 10 per cent stockists margin and 20 per cent retail margin on them with effect from September 25, 2013.
As per the circular on the increase in trade margins for NLEM products by Mumbai based FDC Ltd dated September 21, 2013 Shivaji Nalawade, general manager, Logistics, FDC Limited stated that FDC stockists will get trade margins of 10 per cent and retailers will get 20 per cent on all NLEM products.
Indoco Remedies Ltd has also offered trade margins of 10 per cent to stockists and 20 per cent to retailers on all NLEM products as per DPCO 2013. William D'Souza, senior executive, Sales and Administration, Indoco Remedies stated in the letter dated September 24, 2013, "We will reimburse the difference in the form of Credit Notes on purchase done by the stockists and retailers of our NLEM products from September 1 to 23 with eight per cent and 16 per cent margin."
PC Khasgiwal, vice president, Hetero Healthcare Ltd in a letter dated September 23 has announced trade margins of 10 per cent and 20 per cent to stockists and retailers respectively. He has requested for cooperation and support in maintaining inventories of products adequately to service the market requirements.
As per DPCO 2013, the retailers’ margin for all the scheduled (controlled category) products is 16 per cent on price, inclusive of excise duty. Earlier this was on MRP excluding VAT and excise duty. The stockist margin on controlled products was eight per cent excluding excise duty. The new price control order has reduced the net margins for retailers and wholesalers by four and two per cent respectively which the trade feels will not be commercially viable for them.
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