AIOCD calls out unethical policies by Pharma Cos, asks distribution heads to clean up policies

With this, as per the Association, a smooth flow of supply of essential medicines throughout the country that has paramount importance in the pharmaceutical industry and trade will be maintained.

AIOCD pointed out that the pharmaceutical industry and trade has a professional track record and expected to follow ethical, standard business practices. However, the Association received several complaints and issues from members state, causing concern to their trade members.

"The industry is in the field of the healthcare sector and has the prime objective to maintain the availability of essential drugs with reasonable prices to needy consumers on time when it is most required. We appreciate most pharmaceutical companies have maintained this principle for a long. But in recent times some of the pharmaceutical companies have found deviating from this principle," AIOCD said.

Complying with all such issues and concerns deliberated and shortlisted common concerns or issues which needed urgent attention by pharmaceutical companies to maintain hassle-free supply and availability of drugs throughout India, AIOCD has moved a letter with the drugmakers highlighting the list of issues including:

1. Require uniform billing pattern across the industry with columns - 4 digit HSN code, all prices, tax, date of expiry. Batch no. must match with invoice and physical stock received, avoid ink-pen correction. It must be system-generated if correction required. Billing and dispatch of goods must be in the same month to avoid GST mismatch CVS file need to be sent to the stockists to avoid manual punching.

2. Bigger size shipper (20 Units to 50 Units) need to be split into small shipper packs as it results in increasing expiry. Cut strips claim are problems in some of the companies.

3. All are advised for a Uniform pattern of claim settlement for Leakage /Breakage/Expiries. Credit note with inclusive of the tax amount, charged at the time of purchase, and adopt option 'B' for settlement as per GST circular. No LBE credit notes to be uploaded on GST Portal. Customers are sending expiry on Challan only.

4. Credit Note settlement period not more than 60 days from receipt of L/B/E goods, No credit note with zero value claim for any reason.

5. Supply of goods must resume immediately on receipt of the valid letter by stockists on cheque bouncing happened due to technical reason, RTGS/NEFT facility should be given to all stockists and blank cheque may be kept as security. Information of blank cheque utilization be provided by CFA companies.

6. Scheme circular well before the announcement of a scheme to all stockists /trade and the scheme must be in multiple of retailers scheme lot.

7. There should not be any Discrimination in special rates/offers to some stockists, Spot schemes/day schemes, big lot scheme should immediately be stopped, last day of the month scheme without considering the goods purchased just before the day by other stockists. Instead, the company must allow a similar scheme on the last two invoices or 20 days prior to invoices.

8. Special rates offered to selected chemists from selected wholesalers creating discrimination, must be stopped immediately. Extra discount /scheme to hospital/Chain stores/Other Operators, supplies creating discrimination among chemists having similar status.

9. Institutional supply must be to the Institution /Hospitals where there is no resale to patients, that stock must be stamped "For Hospital Supply Only".

10. Pen booking by field staff with an extra discount to some chemists or hospital is the main reason for entering such stock into regular trade creating in fights among retailers and wholesalers. It must be completely stopped immediately.

11. Companies either do not circulate mandatory pricelist or operate different prices in trade, creating discrimination. It should be immediately stopped.

Subsequently, AIOCD observed, "All the above practices by pharmaceutical companies have created a disturbance in regular ethical operations by trade," and, therefore, asked the pharma firms 'to refrain from such discriminatory policies to avoid internal disputes among trade members as well as with pharmaceutical companies."

"All the above practices by pharmaceutical companies have created a disturbance in regular ethical operations by trade. You are requested, therefore, to refrain from such discriminatory policies to avoid internal disputes among trade members as well as with pharmaceutical companies."

To view the official letter, click on the following link:

https://medicaldialogues.in/pdf_upload/issues-causing-concerns-to-trade-members-146429.pdf