E-drug: Drug Pricing in Sri Lanka (2)
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[Front page Headline and Article - The Island 8th February 1999, a
Sri Lankan newspaper]
Indian drugs sold here (Sri Lanka) at over 7000 per cent higher
By Chittaranjan de Silva and S Venkat Narayan our New Delhi Corr.
Prices of some drugs sold here are astronomically higher than the
Indian market price. The Ventolin Injection 5X1 ml AMP which costs
the equivalent of only 5.70 Sri Lankan rupees in India is priced at
Rs. 406.50 in Sri Lanka - more than 7000% higher than in the Indian
market.
The Indian market price published by us is a price list of drugs produced
by Glaxo Ltd in India sent to us by our New Delhi correspondent S Venkat
Narayan.
The table compares the values of the Indian market price of drugs
produced by Glaxo Ltd., converted to Sri Lankan Rupees (SLR) with retail
price of these drugs sold by Glaxo Wellcome Ceylone Ltd. With the
percentage price in SLR Conversion rate: One Indian Rupee = 1.62 SLR
TABLE
(all prices in Sri Lanka Rs)
Brand Indian price Sri Lanka Price Price increase %
G BETNASOL.N(GLAXO) 5ml 13.77 173.75 1261
G. FMENEO(ALLERGAN) 59.91 158.98 265
G LIQUIFILM TEARS(ALLERGAN) 29.16 197.07 675.8
O C ZOVIRAX 64.8 204 319
G PRED FORTE(ALLERGAN)3ml 61.80 694.75 1072
G CELESTONE 10tabs 2.86 208.4 1200
G BETAGEN (ALLERGAN) 64.8 314.9 462
GCOMPLAN CHOCOLATE 450gm 181.44 346.5 190
VENTOLIN INHALER 100mcg (200dose) 110.16 368 334
VENTOLIN RESPIRATOR SOL.10ml 25.92 135 520
VENTOLIN INJECTION.1ml AMP 5.67 81.3 1433
VENTOLIN INJECTION.5*1ml AMP 5.67 406.5 7100
BECOTIDE ROTACAPS100mcg 10caps 12.02 59.15 121
CELIN PASTILLS 500mg 13.77 72.5 322
OSTACALCIUM SYRUP200ml 43.36 74.75 164
BETNASOL PLAIN DROPS. 5ml 16.2 144 888
BETNASOL EYEEAR DROPS.5ml 13.77 165 1198
SORBEX 100's 21.06 38.9 184
IMURAN TABLETS 50 mg 10's 10.125 28.11 277
MIGRIL TABLETS. 10's 31.59 112.7 356
SEPTRIN TABLETS.10's 12.96 50.53 389
SUDAFED EXPECTORANT 200ml 17.82 90.25 506
ZOVIRAX CREAM 5% 2gm 81+- 646.5 798
ZOVIRAX TABLETS.200mg 5's 124 460 369
Sri Lankan Market retail price / Indian Market price in SLR * 100
"100ml was sold in India for 17.82 SLR but only 60ml was sold in Sri
Lanka for 90.25 SLR
It was a recent news article published in the The Island on December
13, 1998 by Dr. C R Siemon that roused the curiosity and raised the
important question about the difference in drug prices in Sri Lanka
and India. Dr. Siemon a leading eye surgeon in his article had
compared the Sri Lankan prices and the Indian market prices of some
drugs and it was clear that the local prices of drugs sold by Glaxo
Wellcome Ceylon Ltd. was exorbitantly high when compared to the
Indian market prices.
Dr. C R Siemon when contacted said that he had highlighted high
prices of vital drugs because the patients found it difficult to buy
these drugs at these prices. " It costs a patient around Rs. 500 a
day for medicines which many cannot afford. It is my duty as a doctor
to ensure that patients can afford the drugs I prescribe them to buy"
he said. Asked whether the Indian market prices discussed in his
article were accurate he said that these prices were determined after
consulting his fellow physicians in India and that he could prove
with documents that the values were correct.
Glaxo Wellcome Ceylon Ltd. has yet to respond to the chargers
levelled against them in his article. Prof. Weerasuriya, Professor of
Pharmacology also wrote in connection with the article by Dr. Siemon.
When contacted he asked " Why has Glaxo not responded. I am awaiting a
response from them".
However when the Marketing Director of Glaxo Wellcome Ceylon Ltd. was
contacted by " the Island" and asked to comment on the vast difference in
prices of drugs sold in India and Sri Lanka, said "No Comments".
Glaxo Wellcome Ltd. are manufacturing the same drugs in India and
selling them at a lower price in India. They are preventing us from
buying these drugs from the Indian domestic market at a lower rate"
alleged an official of the State Pharmaceutical Corporation (SPC).
One official posed the question: "Most of the drugs that are used in
local hospitals are Indian drugs, if the quality is inferior how are
patients cured?". Therefore it is evident according to them that there is
no difference in the drugs that Glaxo Wellcome Ltd. are manufacturing in
India and the drugs they are marketing in Sri Lanka. An official also
said that most multinational companies are based in India because costs
are low in this part of the world.
An official of the Fair Trading Commission (FTC) said that no taxes
or duty are levied on drugs except for the defence levy of 5.5%.
However the price of drugs will not exceed 165% of the Cost Insurance
and Freight (CIF) price when agreed costs and margins are considered
said the FTC official. He said that the price in the world market is
not considered when setting the price of drugs. He further said that
according to customs entry documents and customs determine the import
price of drugs. The import price is taken into consideration when the
price is set by them he said.
He however said that the FTC is understaffed and it is difficult for
them to determine the world market prices of drugs. But he said that
if sufficient proof can e provided that a particular Company selling