AKCDA demands enquiry against Thanal Pharmacy at Kollam, Kerala for selling drugs at prices less than MRP

Chennai, February 23, 2023 :

The All Kerala Chemists and Druggists Association (AKCDA) has filed a complaint with the state drugs control department seeking an enquiry against a Kollam based pharma retail chain pharmacy firm Thanal Pharmacy, claiming that the chain pharmacy group is resorting to predatory pricing and violates provisions of the DPCO and the CCA.

The trade body wanted the state drug regulator to conduct an immediate inspection at the pharmacy and at the premises of all their outlets.

The association informed the state drug regulator that, a retail chain group, named Thanal Pharmacy at Kollam on February 17th sold the USV product Ecospirin 75 at a discount of 66 per cent. Products worth a sale value of Rs. 865 were sold at Rs. 298 after deducting an amount of Rs. 566.70 as discount. A huge discount was given on this medicine which is supplied to the stockists by the manufacturer at a profit margin less than the NPPA's rate of 16 per cent. The association says that Thanal Pharmacy has violated provisions of Rule 65 of the D&C Rules and Section 4(2)(a) of the competition commission act. Further, they said the quality of the medicines has to be checked.

In the letter given to the state drug controller, AKCDA says that a strip of 14 tablets of Ecospirin is priced at an MRP of Rs. 5.33 inclusive of GST. Several items are sold in its generic versions and convincing the patients that they are branded products of popular companies. AKCDA wants the regulatory body to conduct an inspection at the premises of the chain pharmacy and find out whether they are supplying quality products of the original manufacturing companies. Apart from Ecospirin, a lot of medicines are sold by the group on huge discounts leaving a suspicion on their products.

The letter was signed by the state president AN Mohan and general secretary LR Jayaraj, who were invitees to the meeting called by the Drug Controller General of India (DCGI) on the 8th of this month in New Delhi. The office-bearers informed the DC that based on the decisions at the meeting, the DCGI started sending showcause notices to several online pharmacies and corporate entities who are offering discounts on MRPs. The traders informed the officer that the online traders are violating D&C Rules and also ignoring the direction of the Delhi High Court in this regard.

AKCDA has marked copies of their complaints to the Union health secretary, chairman of the National Pharmaceutical Pricing Authority (NPPA), DCGI, secretary to the Department of Pharmaceuticals, government of India and to the Government of Kerala.

When Pharmabiz sought the response of the state drug controller PM Jayan, he said the department officials are busy preparing for a raid at all the outlets of Thanal Pharmacy. Action will be taken if any kind of violation is detected. Further, the DC said special inspection will be conducted in all the discount pharmacies who are selling medicines at a rate less than their MRPs.  Pharmabiz