Context: With the expansion of Janaushadhi Kendra to more than 10,000 centers the pharma companies are facing losses.
Analysis on Generic Medicines and Its Impact on Pharma Industry
- The rising penetration of generic medicine is denting the growth of the Rs 1.9 lakh-crore domestic pharma market.
What is Janaushadhi Kendra?
- Janaushadhi Kendras sell generic drugs that are priced 50 to 60 per cent lower than the popular brands.
- Implemented by: Pharma & Medical Bureau of India (PMBI), Ministry of Chemicals and Fertilizers.
- Social Benefits:
- Many of Janaushadhi stores are run by women entrepreneurs. Eg- Kerala.
- Distribution: Currently, 33 percent of the stores are in South India.
- Uttar Pradesh has the highest number of Janaushadhi stores, at 1,481.
- Drugs: Five out of the top 10 selling drugs at Janaushadhi kendras across India are related to diabetes and hypertension treatment.
About Generic Drugs
- Generic drugs are drugs with a similar composition as the branded drugs, but made once the patent ends.
- India is primarily a branded generic drugs market, where several pharma companies sell their own brands of generic molecules
- Low Cost: Trade generics are sold directly to hospitals and dispensaries. In the absence of marketing costs, the prices of non-branded generics are very low.
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News Source: BS
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