Centre plans 40 generic drug stores by March 









 

P.T. Jyothi Datta 


Mumbai, Jan. 25 The Government-assisted retail stores to sell unbranded generic 
medicines have begun to open across certain States as part of the Centre's 
multi-stakeholder strategy to get affordable medicines to people. 

The plan involves drug-making public sector units, pharmaceutical companies and 
non-government organisations . And several State governments, including that of 
Maharashtra, Assam, Tamil Nadu, West Bengal, Bihar and Gujarat, are said to 
have shown interest in these 'Jan Aushadhi 24X7 generic drug stores' (JA). 

The Centre's Expression of Interest call received about 76 responses from 
corporates and 60 from NGOs, a Ministry official told Business Line. The Bureau 
of Public Sector Enterprises, under the former Chemicals and Fertilisers 
Secretary, Ms Satwant Reddy, will streamline the process, besides coordinating 
with the PSUs. 

The plan is for 20-40 JA stores across States by this March, though a more 
definite picture will emerge next month. The shops will be run by NGOs, 
selected in consultation with the respective State governments, and a two-track 
supply will be tied up through PSUs and private drug companies to ensure 
alternative supply chains and an enhanced basket of products, the official 
said. 

The generics shop, located in Government hospitals or locations provided by 
State governments will not be subsidised and will have to run as self-propelled 
units, the official added. 

Companies will be allowed margins between 18 and 25 per cent, the official 
said, and yet, the cost of generic medicines sold at JA shops will be lower 
than other retailers, he said. For instance, a 10-tablet strip of a new 
generation antibiotic, priced around Rs 150 in the retail market, sells around 
Rs 30 in Amritsar's generic shop, the official said. 

Amritsar saw the country's first JA store open last November, and the unit 
clocks credit sales, including Government hospitals, of about Rs 90,000 a week, 
the official said. 

Retail sales average about Rs 20,000 a week, he added. The Punjab and Haryana 
Governments are powering ahead with plans to open more stores, besides sourcing 
from JA for Government-funded programmes.

New Delhi will see its first store in early February, even as Punjab will see 
its second store at Mohali and Haryana will open stores at Gurgaon and 
Panchkula in close succession. Plans are afoot for stores in Guwahati and 
Jorhat in Assam. The Centre's National Informatics Centre has also been roped 
in for customised software so the shops can go online and monitor supplies, 
bills etc, the official said. 

Pitfalls 


Private pharma retailers caution that the roll-out needs to be thorough to 
prevent it from getting mired in red-tape or bureaucratic processes. Also, said 
a drug-company representative, doctors need to be encouraged to prescribe 
unbranded generic drugs or medicines that are chemically similar to an original 
branded drug, but much less expensive. To address such issues, the recently 
formed Department of Pharmaceuticals is planning to bring out an index 
publication of generic medicines that will be circulated possibly next month, 
the Ministry source said.

http://www.thehindubusinessline.com/2009/01/26/stories/2009012651340100.htm

ekamber


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