Press Information Bureau
Government of India
Wednesday, April 28, 2010 *Pharmaceutical* **
JAN AUSHADHI - QUALITY MEDICINES AT AFFORDABLE PRICES
P.K. Mohanty**
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17:34 IST
Over the years, India has developed a strong capability in
producing generic medicines in almost all the therapeutic categories. These
medicines are being sold mostly as branded medicines which pushes up the
retail price of these medicines. There is still a large population of poor
people in the country which finds it difficult to afford these medicines. In
fact access to quality health care is a challenge in a developing country
like India. According to NSO estimates, upto 79% cost of health care in
rural areas is due to cost of medicines. This problem gets further
aggravated as upto 80% of expenditure on health care is out-of-pocket. With
65% of India’s population not having access to modern health care (WHO
estimates 2008) the entire problem is compounded several times.
*Unbranded Generic Medicines Vs Branded Medicines*
Access to quality medicines at affordable prices is a key
challenge for the Government. In this connection the prices of branded
medicines are generally higher than generic medicines due to various reasons
inter-alia including branded drugs having patent protection and a number of
drugs having limited regulation through the Drug Prices Control Order, 1995
etc,. *A sample comparison of some of the prices,* shows the vast difference
between the Generics Price and the Market price. Therefore, making available
medicines at affordable prices has been taken up by the newly created
Department of Pharmaceuticals.
Name of salt
Dosage
Pack
Market Price (Rs.)
Generics Price (Rs.)
Difference
Antibiotic: Ciprofloxacin
250 mg
10
55.00
11.10
5 times higher
Pain Killer: Diclofenac
100 mg
10
36.70
3.50
10 times higher
Common Cold: Cetrizine
10 mg
10
20.00
2.75
7 times higher
Fever: Paracetamol
500 mg
10
10.00
2.45
4 times higher
Pain & Fever Nimesulide
100 mg
10
25.00
2.70
9 times higher
Cough syrup
110 ml bottle
33.00
13.30
2.5 times higher
*Jan Aushadhi Campaign*
For fulfilment of this goal, a campaign in the name of ‘Jan
Aushadhi Campaign’ has been launched. The aim of this campaign is to make
available quality medicines at affordable prices for all, especially the
poor and the disadvantaged. Under this campaign, less priced quality
unbranded generic medicines will be made available through Jan Aushadhi
stores which inherently are less priced but are of same and equivalent
quality, efficacy and safety as compared to branded generic medicines.
The generic medicines are being supplied in the first instance
by the Central Pharma PSUs which will ensure both quality and timely supply.
Medicines not available currently with the CPSUs will be sourced from
quality SME units. This will also give support to the Pharma SME sectored as
well as promote public-private partnership and avenues for achievement of
corporate social responsibilities geared towards affordable Medicare for the
masses. The Jan Aushadhi Campaign has now been formalized as Generic Drug
Scheme with the approval of the Planning Scheme.
Under this Scheme, the State Government has to provide space in
Government Hospital premises for the running of the outlets (JAS).
Government hospitals, NGOs, Charitable Organisations and public societies
like Red Cross Society, Rogi Kalyan Samiti typically constituted for the
purpose can be operating agencies for the JAS. The operating agency for JAS
is nominated on the basis of the recommendations of the State
government. Operational
expenditure is met from trade margins admissible for the medicines. The
State Government has to ensure prescription of unbranded generic medicines
by the Government doctors. The Jan Aushadhi Programme is accordingly a self
sustaining business model not dependent on government subsidies or
assistance. It is run on the principle of *“Not for Profits but with
Minimal Profits”.* In order to encourage and provide the initial trigger
for above, it is envisaged that the Central Government would provide only a
one-time assistance of Rs. 2.00 lakhs as furnishing and establishment costs
and further Rs. 50,000 as one time start up cost to NGO etc,. setting up the
Jan Aushadhi Outlet.
*Jan Aushadhi stores*
The Jan Aushadhi Campaign of the Government is expected to make
a contribution by way of achieving the socio-economic goal of affordable
health are through ensuring availability of quality drugs at affordable
prices for all. At present, 231 medicines are being supplied in the 44 JAS
opened in the states of Punjab, Haryana, Uttarakhand, Orissa, Rajasthan,
Andhra Pradesh, Union Territories of Chandigarh and Delhi.
The scheme is also expected to lead to reduction of state health
expenditure on branded medicines, more patient coverage, popularization of
the use of unbranded generic medicines which will bring down the actual
out-of-pocket costs of medicines for the common man due to wider
availability (at present only 2% of the total medicines supplied in the
market are unbranded medicines) and finally better and more affordable
health care driven by the reduction in costs of medicines as the majority
component of health care expenses.
* *
*People’s Participation*
The assistance sought is for just one time facilitative incentive to the Jan
Aushadhi outlet operating agency which would be an NGO/Charitable
body/Cooperative body/health care driven societies like the Red Cross
Society/Rogi Kalyan Samiti, etc., who would do the actual operation of the
outlet on the principle of minimal profits obtained from the minimal margins
included in the cost of the medicine itself. There is no subsidy or
recurring assistance envisaged either by the State or the Central
Government. Cooperation of the State Governments is essential for locating
the outlets in the district hospital premises. The concern of the Members of
Parliament regarding the issue of availability of medicines at affordable
prices is being sought to be addressed under the Scheme. The Generic Drugs
Scheme is an attempt in this direction based on a viable business model not
requiring government subsidy. The programme does not envisage grant of any
upfront subsidy other than the assistance indicated above to provide some
support from the Government/BPPI to NGOs etc.
*Benefits of the Scheme*
The Jan Aushadhi Campaign will help:
· Improve access to healthcare in as much as
cost of treatment would come down substantially. This would enable the
Public Health System to increase the coverage.
· Secure a socio-economically viable
mechanism/institutional arrangement for efficacious sales of Pharma CPSU
products, thereby improving their viability.
· Promote & encourage private industry to
sell their quality unbranded generic products through these retail outlets.
· Ensuring successful implementation of the
Jan Aushadhi campaign would dispel the myth that quality of medicines is
linked to price and demonstrate that quality medicines can be sold at
substantially lower prices.
· Educate doctors that unbranded generic
medicines provide a better option that branded products since quality of
generic medicines can be equally efficacious and safe at much lower prices.
· Create consumer awareness by involving
private, charitable bodies and NGOs by making them part of the campaign.
· Reduce promotional cost and profits for
the benefit of patients.
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RTS/HN
*SS-84/SF-84/28.04.2010*
*** Media and communication Officer, Press Information Bureau, New Delhi*
