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Kerala based pharma units shutting mfg facilities as they turn marketers for products of northern states
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Peethaambaran Kunnathoor, Chennai
October 26 , 2015
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Many of the remaining few manufacturing companies of allopathic
medicines in Kerala are turning into marketing companies after closing
down their production facilities and entering into contract
manufacturing agreements with large players from neighboring states and
north India.
At present less than 20 companies are continuing
with production and that too in small quantities. Supply of medicines
for the requirement of Kerala is done by companies registered and
operating in other states. About 75 manufacturing units have closed down
in the last 25 years for want of support for survival. Those remaining
firms are mostly depended on government supply which is very few in
quantity.
The major reason cited for stopping production is due
to zero encouragement from government side. Despite repeated requests by
the Kerala Pharmaceutical Manufacturers Association (KPMA), the Kerala
Medical Services Corporation Limited (KMSCL) is not increasing the
quantum of procurement from local manufacturers, but buying huge
quantities of medicines from big players from other states and MNCs.
There is allegation that the officials of KMSCL prefer companies from
other states because of incentives they receive from outside companies.
Further,
there is lack of financial support from state and central governments.
Investment for production facilities and the labour charges are
increasing day by day. Either with the help of state government or
central government, a pharma cluster or pharma park can help the
remaining units from the present crisis, say members of KPMA.
According
to M Parameswaran Namboodiri, secretary of KPMA, domestic production
units reach in agreement with KMSCL for a few quantities of products of
some generic items. These companies, in turn, get into contract with
manufacturers from duty free zones in Himachal Pradesh and Uttarakhand
for manufacturing. Afterwards they market the products in their brands
in Kerala. Ten per cent of the total drugs marketed in the country is
sold in Kerala and 90 per cent of the marketed products are manufactured
in other states.
“Drugs worth over Rs.
8000 crores are imported to the state from other states and foreign
countries for the consumption of the people in Kerala every year. The
total production of drugs manufactured by domestic companies comes
around below Rs. 110 crores per year,” he said.
With
a view to promote domestic companies, KMSCL established the ‘Kerala
Institute of Drugs Studies (KIDS) and the former head of department of
pharmacy at the medical college hospital at Thiruvananthapuram, Dr K G
Revikumar, was made its director. But, it is alleged that the state
government has not encouraged the initiative of KMSCL because of
pressure from big pharma companies from north India and the Institute
was shut down immediately after its inauguration.
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