Leading pharmaceutical companies are selling the same drug in the same dosage under different brand names and at widely different prices, revealed a recent data collection drive by the National Pharmaceutical Pricing Authority (NPPA). This fragments the market and creates “artificial competition” while retaining (and entrenching) bigger market shares with a few players, undermining real competition, reckons the regulator.
The Indian pharmaceutical market is peculiar in certain ways: For instance, in the case of most therapies, half to three-fourths of the market is held by a less than a dozen players with the financial muscle to promote their brands through doctors and the trade, while the remaining segment of the market consists of hundreds of smaller players. With consumer choices being influenced by doctors’ prescriptions rather than price or knowledge of product quality, top-selling brands invariably tend to be the most expensive ones too, which partly explains the higher market share of the leading players. This is despite the generic substance (and hence the curative effect and indications) of various brands in a therapeutic segment being the same.
Of course, higher standards of good manufacturing practices (GMP) entail higher spends on raw material sourcing, manufacturing processes and packaging.
This could drive up costs a bit (although adherence to GMP standards is mandatory for all players). But what makes the top-selling brands the costlier ones too is essentially the huge promotional expenses incurred by the companies.
The same company selling the same drug under different brand names and at different prices is even more inexplicable. Popular painkiller diclofenac (50 mg dosage) sold as Voveran by Novartis, for instance, is available at Rs 3.49 and Rs 2.64 per tablet (for a pack of 15 tablets). Novartis also sells the same drug as Voltaflam, which is priced at Rs 2.58 per tablet. Zydus Cadila’s diclofenac is sold under four brand names — Activa, Inac, Diclofen and Jonac — with the price per tablet ranging from 19 paise to Rs 1.29 for a 10-tablet pack.
“Cipla for instance, sells the anti-allergic cetirizine at Rs 30 under the Alerid brand and at Rs 2.20 under