Biplab Chatterjee, CEO, Bureau of Pharma PSUs of India (BPPI), shares his plans in scaling up the Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana (PMBJP) and promoting generic medicines across the country. In an interaction with Prathiba Raju, he touches upon important aspects such as procurement methods, their strategy for expansion and consumer awareness
What is the intent of BPPI for Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana (PMBJP)?
Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana (PMBJP) is a noble mission introduced by the government in 2008. However, the scheme was not very successful due to many reasons. The number of stores which were over 200 went down to 89. Since some of the products were not available at the stores, there was trouble in supply chain as well and the programme was about to be closed. The government saw the intrinsic strength and modified the scheme, and now they are very keen for the scheme to succeed.
The Bureau of Pharma PSUs of India (BPPI) under the Department of Pharmaceuticals (DoP), Government of India, was made the implementing agency of PMBJP and the retail stores under the scheme was named Pradhan Mantri Bhartiya Jan Aushadhi Kendra (PMJAK) instead of Jan Aushadhi Stores. Our intent is to provide quality medicines at an affordable price for the citizens of the country. As of now, BPPI has opened 1014 stores and soon we would be touching 3000 stores.
How do you go about procuring generic drugs for the stores?
We procure products from three sources: the World Health Organisation’s (WHO) GMP-certified generic drug plants, Schedule M GMP-accredited organisations and the Central PSUs. Firstly, we look at the different data available in the market, then the formulations which are selling high, and next we examine on thousands of prescription data that is available and finally pick up our products. Once the product is sorted, we decide to procure and float tenders.
In tenders, we have technical and financial bid. In technical bid, there are stringent considerations that the suppliers who participate in the bid need to possess. There are also pre-tendering processes through which we identify them, then the tender is floated and we pick the products procured through the lowest bidder. After the product and the manufacturer are identified, we place order and the products come to central warehouse in Gurgaon. Each batch of drug supplied to PMBJP Kendras are tested initially in the plant and random samples are taken from where they reach the central warehouse. Thereafter, they are sent to National Accreditation Board for Testing and Calibration Laboratories (NABL), accredited laboratories empanelled by BPPI, for testing. Only after the clearance of NABL comes, they are sent to JAKs.
Health experts inform that over-dependence on Central PSUs have led to delay in supply of generic drugs and there are not enough stocks available in certain JAKs. How are you addressing this gap?
BPPI is an organisation created by Central Public Sector Undertaking (CPSUs). We do consider them at the same time and don’t give them huge amount preference. Moreover, we go by L1 format (the lowest bidders); many a times, the pricing they offer does not fit in with the rates that are given to L1. A majority of our supplies come from WHO GMP, Schedule M and the private manufacturers. The percentage of procurement from CPSUs is very less. Hence, there is no delay in supply of the generic medicines.
How many JAKs are currently working across India and how many will open by the end of the year? Is there any set target?
Our intent is to open up at least one JAK in each and every district pan-India. Kerala is one of the states where people understand and are familiar with the generic medicines. They have 177 kendras opened and most of them are private.
Chhattisgarh is the second state which has 145 kendras out of which 136 kendras are opened by government and nine by private organisations. Uttar Pradesh has 141 kendras and ranks third, Gujarat falls in fourth place followed by Maharashtra.
Considering the geographical challenges, our presence is fairly well in the North Eastern states. We have 14 kendras in Arunachal Pradesh, eight in Tripura and three in Mizoram. We want to establish these kendras across the length and breadth of the country. All this while, we were concentrating on signing MoUs with state governments but we found that these are not resulting in opening of JAKs. Thus, after our internal analysis, we knew that a majority of the kendras are private. So, we approached the people directly and advertised in dailies across regional languages with an application form. We got 27,000 applications out of which we have given in-principle approval for 21,000. Thereafter, we are also organising camps in each state to make few selected people understand on how to open a store, and on various other processes, including how to get a license. Before June, we expect to open 3000 kendras.
On an average, how much does a person benefit by buying in JAKs. Can you share the price difference of the drugs sold in JAKs and the market?
The mandate from the government is that whether it is from the National List of Essential Medicines (NLEM) or non-NLEM, the price should not cross 50 per cent of the prices of the branded products. We identify the top three branded products and take their MRPs; for example, amoxicillin pill is priced at Rs 25 and the other products in the market cost Rs 22 and Rs 21. We take an average of these three and our procurement process is L1. In many instances, our product can be sold at 15 to 10 per cent of the average brand prices but we have to give margins to retailers (20 per cent) and distributors (10 per cent). Besides, the franchise agency gets six per cent and four per cent for promotional activity and then we have the channel and administrative cost as well.
If a patient of diabetes has to take Metformin Hydrochloride (500 mg), the price of branded products is Rs13.90, while in JAKs, it is sold for Rs 5.15. Likewise, average price of leading brands of cardiac treatment drugs such as Amlodipine (5 mg) and Atenolol (50 mg), film coated tablets– Ramipril (5 mg), Losartan (50 mg) and Hydroclorothiaze (12.5 mg) are eight to 10 times costlier than the generic medicines in JAKs. If a person is spending Rs 1000 for medicines bought from a branded shop, he can avail the same medicine for Rs 250 to 300. JAKs can be a boon for people who are aged 56 to 60 as they could get quality medicines at an affordable price.
Prime Minister Narendra Modi has indicated that his government may bring in a legal framework under which doctors will have to prescribe generic medicines, which are cheaper than equivalent branded drugs to patients. How will this help JAKs?
What are your plans for consumer awareness on generics?
In order to spread awareness about the use and affordable availability of generic drugs in the country, we have initiated publicity campaigns around JAKs through hoardings, bulk SMSes, mobile exhibitions, distribution of pamphlets, etc. Also, a 15-day radio/FM campaign was also launched in various states of the country. Apart from it, we will be soon coming out with a toll-free helpline number through which patients can ask their queries. Also, a mobile application will be launched in which they can log in with their pin codes to get details about the nearest store and the products available. The scheme provides over 600 medicines and 154 surgicals and consumables.