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Healthcare and
Access to Medicines

Vijaykumar Shivpuje*

*The views expressed in this presentation are the speaker’s own and do not represent the views of the organization
he represents.

1
Roadmap







2

Introduction
Current situation of access to medicines in India
Generic drugs:
- What are generic drugs?
- Are they safe?
Case studies
Jan Aushadhi campaign
Current situation of access to medicines
Availability of medical services

Priorities of the expenses

Pricing of the drugs

3
Current situation of access to medicines
Category

Dosage

Pack

Average
market price of
branded drug

Antibiotic

Ciprofloxacin

250 mg

10

54.00 Rs.

Pain killer

Diclofenac SR

100 mg

10

51.91 Rs.

Common cold

Cetirizine

10 mg

10

37.50 Rs.

Fever

4

Name of drug

Paracetamol

500 mg

10

13.56 Rs.
Generic drugs
A generic drug is a drug defined as "a drug product that is
comparable to brand/reference listed drug product in dosage form,
strength, route of administration, quality and performance
characteristics, and intended use.“ It has also been defined as a
term referring to any drug marketed under its chemical name
without advertising.
Prescriptions may be issued for drugs specifying only the chemical
name, rather than a manufacturer's name; such a prescription can
be filled with a drug of any brand meeting the specification. For
example, a prescription for lansoprazole can be filled with generic
lansoprazole, Prevacid, Helicid, Zoton, Inhibitol, or Monolitum.

5
Current situation of access to medicines
Category

Dosage

Pack

Average
market price of
branded drug

Prices of generic
medicines sold in Jan
Aushadhi outlets

Difference

Antibiotic

Ciprofloxacin

250 mg

10

54.00 Rs.

11.10 Rs.

5 times
higher

Pain killer

Diclofenac SR

100 mg

10

51.91 Rs.

3.35 Rs.

15.5 times
higher

Common cold

Cetirizine

10 mg

10

37.50 Rs.

2.75 Rs.

13.5 times
higher

Fever

6

Name of drug

Paracetamol

500 mg

10

13.56 Rs.

2.45 Rs.

5.5 times
higher
Question in Loksabha on 6th August 2013
Shri KIRODI LAL
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:(a) whether there is a huge difference in the prices of non-branded generic medicines being sold at the
Jan Aushadhi Stores (JAS) and that of branded medicines in the country;
(b) if so, the details thereof and the reasons therefor; and
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND
PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS
AND FERTILIZERS (SHRI SRIKANT KUMAR JENA):

7

(a) & (b): Yes Sir. There is a huge difference in the prices of non-branded generic medicines being sold
at the Jan Aushadhi Stores (JAS) and the prices of branded medicines sold in the open market in the
country.
The prices of branded medicines are generally higher than the prices of equivalent generic medicines
due to promotional efforts made in selling of such products. Besides some branded drugs enjoy patent
protection and a number of drugs are not covered under the regulation through the Drug Prices Control
Orders. In the case of generic drugs sold at Jan Aushadhi Stores, the medicines are directly supplied
through stockists/CPSUs at actual cost plus limited margins. It is a conscious decision of the
Government to keep the prices of the medicines at affordable levels for the benefit of all.
Jan Aushadhi Campaign
What it is?




8

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.
Jan Aushadhi Campaign
Eligibility:

Under this Scheme, State Government has to provide space in Government Hospital
premises for the running of the outlets (Called as Jan Aushadhi Stores).




Operational expenditure is met from trade margins admissible for 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”.



9

Government hospitals, NGOs, Charitable Organizations 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.

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 Campaign
Status:
At present, 157 JAS opened in the states of
 Punjab,
 Haryana,
 Uttarakhand,
 Orissa,
 Rajasthan,
 Andhra Pradesh,
 Union Territories of Chandigarh and
 Delhi.
However, only 93 are currently functioning.

10

State governments of Andhra Pradesh and Kerala have launched their own subsidized
medicine programme by setting up government owned chains.
A person suffering from a disease is a patient and
not the consumer. The medicine should be meant
for healing and not selling.

11

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Vijay shivpuje access to medicines

  • 1. Healthcare and Access to Medicines Vijaykumar Shivpuje* *The views expressed in this presentation are the speaker’s own and do not represent the views of the organization he represents. 1
  • 2. Roadmap      2 Introduction Current situation of access to medicines in India Generic drugs: - What are generic drugs? - Are they safe? Case studies Jan Aushadhi campaign
  • 3. Current situation of access to medicines Availability of medical services Priorities of the expenses Pricing of the drugs 3
  • 4. Current situation of access to medicines Category Dosage Pack Average market price of branded drug Antibiotic Ciprofloxacin 250 mg 10 54.00 Rs. Pain killer Diclofenac SR 100 mg 10 51.91 Rs. Common cold Cetirizine 10 mg 10 37.50 Rs. Fever 4 Name of drug Paracetamol 500 mg 10 13.56 Rs.
  • 5. Generic drugs A generic drug is a drug defined as "a drug product that is comparable to brand/reference listed drug product in dosage form, strength, route of administration, quality and performance characteristics, and intended use.“ It has also been defined as a term referring to any drug marketed under its chemical name without advertising. Prescriptions may be issued for drugs specifying only the chemical name, rather than a manufacturer's name; such a prescription can be filled with a drug of any brand meeting the specification. For example, a prescription for lansoprazole can be filled with generic lansoprazole, Prevacid, Helicid, Zoton, Inhibitol, or Monolitum. 5
  • 6. Current situation of access to medicines Category Dosage Pack Average market price of branded drug Prices of generic medicines sold in Jan Aushadhi outlets Difference Antibiotic Ciprofloxacin 250 mg 10 54.00 Rs. 11.10 Rs. 5 times higher Pain killer Diclofenac SR 100 mg 10 51.91 Rs. 3.35 Rs. 15.5 times higher Common cold Cetirizine 10 mg 10 37.50 Rs. 2.75 Rs. 13.5 times higher Fever 6 Name of drug Paracetamol 500 mg 10 13.56 Rs. 2.45 Rs. 5.5 times higher
  • 7. Question in Loksabha on 6th August 2013 Shri KIRODI LAL Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:(a) whether there is a huge difference in the prices of non-branded generic medicines being sold at the Jan Aushadhi Stores (JAS) and that of branded medicines in the country; (b) if so, the details thereof and the reasons therefor; and MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI SRIKANT KUMAR JENA): 7 (a) & (b): Yes Sir. There is a huge difference in the prices of non-branded generic medicines being sold at the Jan Aushadhi Stores (JAS) and the prices of branded medicines sold in the open market in the country. The prices of branded medicines are generally higher than the prices of equivalent generic medicines due to promotional efforts made in selling of such products. Besides some branded drugs enjoy patent protection and a number of drugs are not covered under the regulation through the Drug Prices Control Orders. In the case of generic drugs sold at Jan Aushadhi Stores, the medicines are directly supplied through stockists/CPSUs at actual cost plus limited margins. It is a conscious decision of the Government to keep the prices of the medicines at affordable levels for the benefit of all.
  • 8. Jan Aushadhi Campaign What it is?   8 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.
  • 9. Jan Aushadhi Campaign Eligibility:  Under this Scheme, State Government has to provide space in Government Hospital premises for the running of the outlets (Called as Jan Aushadhi Stores).   Operational expenditure is met from trade margins admissible for 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”.  9 Government hospitals, NGOs, Charitable Organizations 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. 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.
  • 10. Jan Aushadhi Campaign Status: At present, 157 JAS opened in the states of  Punjab,  Haryana,  Uttarakhand,  Orissa,  Rajasthan,  Andhra Pradesh,  Union Territories of Chandigarh and  Delhi. However, only 93 are currently functioning. 10 State governments of Andhra Pradesh and Kerala have launched their own subsidized medicine programme by setting up government owned chains.
  • 11. A person suffering from a disease is a patient and not the consumer. The medicine should be meant for healing and not selling. 11