KATHMANDU, Jan 27: Patients do not demand discounts in medicines and pharmacies do not offer them. However, pharmaceuticals companies offer up to 400 percent bonus to pharmacy operators. Because of this the number of pharmacies in the capital is the highest per population, even compared to the world´s biggest cities, according to the Department of Drug Administration (DDA) under the Ministry of Health and Population.
Officials at DDA said that apart from the registered pharmacies in the capital, the number of those of dubious legal status is also significant. DDA, the national regulatory body, said the reason behind this high number is the bonus system.
Moreover, pharmaceuticals companies encourage doctors to prescribe unnecessary medicines to patients. And instead of medicines prescribed by the doctors, the pharmacies offer only those medicines for which they get a huge bonus, according to stakeholders.
- Due to huge bonuses and fat commissions in drugs, patients are forced pay exorbitant prices
- Companies are not allowed to provide over 16 percent commission to pharmacies
"Pharmaceuticals companies offer up to 400 percent bonus in medicines to the pharmacy operators," said Bal Krishna Khakurel, director general at DDA, adding that the number of pharmacies in Kathmandu is the highest per population compared even to mega cities like Delhi and Karachi.
"Have you ever heard of a pharmacy business operating at a loss? I don´t know of any pharmacy that has shut down due to losses," added Khakurel. He said that because of unhealthy competition in the drugs market, patients end up paying exorbitant prices.
According to Khakurel, pharmaceuticals companies offer huge bonus and they recover the money later by fleecing the patients. DDA said that national pharmaceuticals companies have been providing huge bonuses to compete with national and international rivals. Because of the bonuses involved, the pharmacy operators are also indulging in unhealthy competition. They are ready to pay millions in rent for opening a shop at hospital premises, and they force patients to buy costly medicines.
Pharmacies sometimes even cause confusion among patients to make them buy expensive medicines. They often tell patients that the medicine prescribed by the doctor does not work properly or that what they have on offer is as good as what is prescribed, or even better.
He informed that DDA has been planning to discourage the bonuses that drugs manufacturers have been providing to pharmacies, dealers and wholesalers.
"How can they offer over three million rupees a month (in rent) to operate a hospital pharmacy with just the 16 percent commission that they get legally?" questioned Khakurel. He said that, as per DDA regulations, pharmacies are not allowed to receive over 16 percent bonus.
"As in other sectors, there is unhealthy competition in the drugs market," said Hari Bhakta Sharma, executive director of Deurali Janta Pharmaceuticals Pvt. Ltd., adding that the responsible authorities cannot excuse themselves by just blaming the private sector. He said it is DDA which provides licenses to pharmacies and pharmaceuticals companies.
"The responsibility of monitoring the pharmacies and the quality of drugs lies with DDA," Sharma said. Quality might have been compromised at companies which have been offering hefty bonuses, he added.
Sharma concedes that national as well as international pharmaceutical companies have been offering huge bonuses and that is how pharmacies are able to pay up to Rs 3 million a month as rent to open a hospital pharmacy.
He suggests DDA officials enforce good clinical practices among doctors and pharmacists and improve the regulation of drugs.
Published on 2015-01-27 02:12:44
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