Healthy Skepticism Library item: 15481
Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.
Publication type: news
Singh K.
Retailers end boycott of Novartis
The Economic Times 2009 Apr 13
http://economictimes.indiatimes.com/Retailers-end-boycott-of-Novartis/rssarticleshow/4393287.cms
Full text:
Mumbai’s drug retailers and stockists have ended their boycott of the products of Swiss drugmaker Novartis AG and its subsidiary
Sandoz, with the companies agreeing to end the practice of selling some of their high-value medicines directly to consumers from June 1.
Over 7,000 retailers and stockists had stopped selling all the 198 medicines of two firms from April 1, protesting the drugmakers’ practice of direct selling of super specialty medicines.
The agreement was reached on Saturday night and retailers will start selling the firms’ drugs from Monday. The companies have agreed to give 8% and 16% margin to stockists and retailers, respectively, as per the drug price control order (DPCO) regulations.
“The retailers on their part will improve the infrastructure and storing conditions of drugs to ensure the efficacy of such drugs are not reduced,” said Dilip Mehta, president of the joint committee of Retail Dispensing Chemists and Druggists Association and Pharmaceutical Wholesalers’ Association.
Novartis officials could not be reached for comments. The two companies have been selling drugs such as Glivec, Sandostatin Lar and Femara used in the treatment of cancer directly to patients for some years. The retailers had accused the companies of depriving them of their margins on such drugs estimated to be around Rs 50 crore annually.
They also accused the companies of selling drugs to consumers at retail prices that included their margins.
Last week, a Novartis spokeswoman had said that the company’s direct marketing policy is in the interest of patients because such super specialty products are required to be stored under special conditions.
The current the cold supply chain in India does not meet the international standards, she said adding that the company adhered to the DPCO pricing regulations.
Mr Mehta added stockists and retailers would now target other companies such as Piramal Healthcare, Elder Pharma and Panacea Biotec, which also follow the practice direct selling. But ET could not independently verify whether these companies sell drugs directly to consumers.
As per research firm ORG IMS’ data, Novartis (along with Sandoz) is among the top 25 drug firms in India. It has an annual turnover of around Rs 550 crore in India.
