025. Government leads to collapse of small drug units in Kerala.

KMSCL’s faulty procurement policy led to collapse of small drug units in Kerala: KIDS study.

By Pharma Biz. Com

October 21, 2013 
Our Bureau, Chennai

An unhealthy and unscientific approach of the Kerala Medical Services Corporation Ltd (KMSCL) in procuring and supplying of drugs to government hospitals is the reason behind the collapse of the small scale pharma industries in the state, reveals a study conducted by Kerala Institute of Drug Studies (KIDS).

KIDS, a research institute floated by KMSCL, will submit the study report to the government in next week, it is learnt.

The report says that KMSCL has no standard and scientific method for procuring drugs from companies. Within the last three years about ten small scale pharmaceutical manufacturing companies in Kerala have stopped production and downed their shutters for want of support from government. The study says that currently only three companies are working for government supply and they too are struggling.

The institute has conducted the study by employing 480 research associates who had visited almost all the closed units and held interviews with their managements and made the reports. KIDS, later conducted three meetings at three locations inviting all the units and identified their grievances. According to sources, there were 44 SSI units working in the state till a decade ago, and the number has come down to three now.

A major challenge faced by the companies is the rigid tender conditions put forward by the Corporation which unlike what is happening in other states, is giving orders for one time supply. This often becomes a huge burden for the small scale industry to comply with the conditions on time. More often the units have to employ additional laborers with over time work. Quarterly or half yearly orders could be viable for the industrial units to continue and supply quality products, suggests KIDS.

The Institute is conducting another study on the subject ‘quality of medicines marketed in Kerala’. The study will be finished in this Month, said a research associate.

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Republished here by courtesy of Pharma Biz. Com