049. Kerala Govt. Abandons Plans To Set Up Drug Manufacturing Units, To Please Bosses.

Kerala Govt. Abandons Plans To Set Up Drug Manufacturing Units, To Please Bosses.

By Special Correspondent

The Kerala Government had announced its desire, not decision, to enter the field of pharmaceutical manufacturing in the year 2012. Even after billions of rupees having flown into the coffers of multi national medicine manufacturing companies, the government has not cared to make common man’s dream come true. It is like the politicians in government, and their bureaucratic counterparts as well, do not like medicine manufacturing units to come up in the public sector, and the large corporates who contribute handsomely to their election funds and their children’s educational funds loose their huge sales in Kerala. Their loyalty is to large pharmaceutical companies, not to people or government. And they could not or did ever care to persuade these companies to stop extracting unrealistically high prices for life-saving drugs or refrain from withdrawing low-priced good drugs from the market. 

Even in 2013, the Government of Kerala was said to have been giving serious consideration to proposals for setting up drug manufacturing plants in the state, as was revealed in the health minister’s speech in the Emerging Kerala Global Connect Meet 2012, which in itself was an utter farce. Multi-faceted and many dimensional growth was assured in Kerala’s health sector by many participants but when they learned that it is not easy to cheat and lure the highly politicized people of Kerala as they do in states likes Bihar, these aspiring entrepreneurs suddenly vanished. Government’s declaration to set up state-owned drug manufacturing units today seems like a threat sent to large medicine manufacturers: ‘We are going to start; come up and pay’- which was it. If not, why did they defeat in every way the two dependable medicine manufacturing plants already functioning in Kerala, owned by the very government? 

The Pharmaceutical Corporation of Kerala Ltd for Indigenous Medicine, marketing medicines under the brand name of Oushadhi, was started even before India gained independence from the British. Started in 1941 as Sree Kerala Varma Ayurveda Pharmacy by the Maharaja of Cochin, it became a registered co-operative society in 1959 and then in 1975 was registered under the Indian Companies Act and renamed as The Pharmaceutical Corporation (Indian Medicines) Kerala Ltd, Thrissur. It has modern manufacturing units, regional distribution units, a full-fledged Research and Development Centre and a wide distribution network. It hands over crores of rupees to government each year as dividend. But, when the question of procuring medicines for government came, they were pushed back far, to stand behind large private companies. Politicians and bureaucrats in government are suffocating this company on the hope that it would vanish for ever and clear the field for favourite private companies.

The Kerala State Drugs & Pharmaceuticals Ltd., a Public Sector Undertaking fully owned by the Government of Kerala, ‘has been manufacturing and supplying essential and life saving allopathic medicines to cater to the need of the common patients resorting to Government Hospitals in the State of Kerala’ since 1974. It is self-revealing to analyze how much they are favoured while procuring medicines for the state-owned Kerala State Medical Service Corporation. When the government directly purchased medicine from manufacturers in the past, this public sector unit still had a hope. When government established this particular corporation for procurement of medicine for government, good public sector companies lost all hope. This corporation with its undemocratic bureaucratic haughtiness has been favouring only private companies and has been behaving so from the first. When government directly purchased medicine, there indeed had been corruption by purchasing committees and directors of health services had been charge-sheeted with corruption, but corruption had been comparatively lower and transparency higher when compared with this corporation. It is not illogical to doubt if this corporation was set up to monopolize corruption in drug purchasing in Kerala.

The original news, announcing Kerala government’s decision to enter drug manufacturing field is here, as reported by Pharma Biz.

Kerala Govt. Planning To Set Up Drug Mfg. Units In Public Sector.

By Pharma Biz

Joseph Alexander, New Delhi
Thursday, October 25, 2012

Kerala, which is heavily dependent on other States for medicines, is weighing the options to set up manufacturing plants in the public sector on the lines of the central public sector pharmaceutical manufacturing units to make drugs affordable and accessible.

Kerala which accounts for more than 10 per cent of the national consumption of medicines has only a few manufacturing units to cater to the demand. Out of the 10,000 licensed manufacturing units in the country, the State may have only a few dozens of units, making it almost fully dependent on the other States, a senior official of the State Health Department told Pharma Biz.

“The Government is considering a proposal for setting up drug manufacturing plants in the public sector to make drugs affordable. Detailed modalities were being worked out and feasibility studies were being done. The working and profitability of the central public sector manufacturing units were also being examined to work out a model for the State,” he said.

The State also is weighing options like going for public-private partnership model. The objective is to make available quality healthcare to all at affordable costs, he said, adding that the State has already taken a number of initiatives to bring down the prices of medicines.

“We have a better distribution system with State-run stores to make affordable the drugs. However, the main problem now is the supply side and many were advocating the entry of the government to produce the medicines,” he said.

Referring to the Clinical Establishment Act which was already implemented by many States following the passage of the Bill by the Union Government, he said the State has initiated steps to formulate laws and adopt the same in the State with a view to improving the quality of care to patients by regulating hospitals and laboratories.

Link: http://www.pharmabiz.com/NewsDetails.aspx?aid=71823&sid=1

Republished here by courtesy of Pharma Biz Dot Com