Demand for chronic drugs likely to rise 30% ahead of price hike | Business Standard News

Clipped from: https://www.business-standard.com/article/companies/demand-for-chronic-drugs-likely-to-rise-30-ahead-of-price-hike-122040100055_1.html

There would be a general rise in demand for chronic medicines as consumers would stock up ahead of a price rise

Pharmacy

Stockists and traders of pha­rma products pointed out that they expect demand for chr­onic therapy medications, such as hypertension and diabetic, to rise by at least 30 per cent ahead of the 10.7 per cent hike in essential medicine prices.

Rajiv Singhal, general secretary of the All India Organization of Chemists and Druggists (AIOCD), an umb­rella association of more than 650,000 retail chemists in the country, said the tra­de channels now had around one and a half month’s inventory.

“There is stock with the C&F agents, retailers and also some in the company warehouses. We can easily estimate that trade has around one and half to two months of inventory. The price rise will be applicable for drugs that are manufactured from April 1,” Singhal said.

He expects there would be a general rise in demand for chronic medicines as consumers would stock up ahead of a price rise. “Demand for chronic medicines can rise by 30 per cent in the short-term due to stocking up,” Singhal added.

Meanwhile, pharma company sources indicated that every firm may not be able to take a 10.7 per cent hike across products as market forces would keep the prices in check.

“Firms have reduced production already in March in anticipation of the price hike across the board in NLEM medicines. In April, the production will increase, but we do not expect to take a10.7 per cent rise for all NLEM drugs,” said managing director of a large pharmaceutical company.

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