024. Small medical units forced to close down by medical marketing companies.

Growth in drug marketing cos. force closure of SSI units in Kerala

By Pharma Biz. Com

October 25, 2013 
Peethaambaran Kunnathoor, Chennai

The very few small scale pharma manufacturing companies that have survived all these years in Kerala are now set to bear the brunt of the increasing number of marketing companies, with most of the remaining units on the verge of closure.

According to a report given by the president of Kerala Pharmaceutical Manufacturers Association (KPMA), only eleven manufacturing units are now actively operating in Kerala thanks to the indifferent attitude of the state government towards pharma industry problems. Until a few years ago about twenty units were actively operating, but most of them have now turned into marketing business in order to avoid financial loss.

K P Purushothaman, who led a team to the health minister to brief him the problems in the industry, told Pharmabiz that manufacturers wanted to avoid risk in running the units and become marketers of MNC’s products. He said though there is no shortage of drugs of any category, the situation has left the SSI units into a sluggish position. The growth of marketing companies could lead to the closure of about 20 established manufacturing units in the last five years. Those operating units are only working for government supply.

KPMA’s study foresees that over the next two years the number of active units will drop from eleven to five if the current trend continues. Besides, there could be big loss of jobs for many persons including skilled workers and pharmacists due to this growing crisis. In the near future Kerala will become a land of medicine marketing for MNC’s products unless the state government heeds to their demands.

Meanwhile, the marketing companies’ business continues to grow and is predicted to acquire 80 per cent of the total requirement of the state by 2015.  The marketers-turned-manufacturers procure medicines from big players from Mumbai, Delhi and Hyderabad and distribute them to various retailers.

To name a few currently working SSI units in Kerala are Bescoat Pharma and Camerin Pharmaceuticals in Kannur, Chethana Pharmaceuticals in Malappuram, Variety Medicals at Shoranur, Lab Indus in Palakkadu, Southern Union and Vetas Pharma in Thrissur, Vaisali Pharma and capsulation and tablets in Ernakulam, Sance Pharmaceuticals in Pala, PCT pharma and TC Pharmaceuticals in Thiruvananthapuram. These units have their own branded products and manufacturing facilities.

Link: http://www.pharmabiz.com/NewsDetails.aspx?aid=78385&sid=1

Republished here by courtesy of Pharma Biz.Com