Could be punished if it fails to meet extended deadline under a govt supply programme.
Could be punished if it fails to meet extended deadline under a govt supply programme.
MUMBAI: Ranbaxy, the largest Indian pharma company, could find its name struck off the Australian government’s list of generics suppliers for failing to supply the consignment on time. The company has received a warning from the Australian health ministry, which has extended the deadline from August 1 earlier to September 15, saying it would be delisted from the Pharmaceutical Benefits Scheme (PBS) if it again failed to supply the consignment before the extended deadline.
Ranbaxy’s action has been widely criticised in Australia and the Australian government has charged that it has given an unfair disadvantage to local manufacturers, who had already slashed prices by 12.5% below the normal. Since Ranbaxy’s Ozvir was accepted for prenoscription subsidies under the PBS, similar drugs have been sold by local companies at $154 per prenoscription, which is $25 less than the price paid before.
Under Australian savings measures, the listing of new generic drugs on the PBS automatically cuts by 12.5% the price the government pays for other drugs of the same type. The Australian pharma market is pegged at nearly $8.5 billion.
Contacted, a Ranbaxy spokesman said it was yet to receive any information from the Australian government. “Four products of Ranbaxy Australia Pty Ltd are currently listed with the PBS. All products (except one stock keeping unit) have been invoiced from India and we are confident to make them available under the PBS very soon,” he told DNA Money.
The four products introduced by Ranbaxy in Australia include antibiotics, treatments for genital herpes and peptic ulcers. The prices the benefit scheme will pay for the Ranbaxy products range from $8.24 for Rancef, an anti-bacterial treatment to $159 for Ozvir, a drug for genital herpes.
The department of health is learnt to have expressed its concerns to Ranbaxy Australia Pty Ltd, subsidiary of the company, and is working closely with it to ensure early availability of the new brands.
Experts say this might be a part of cartelisation to thwart the government’s plan to provide generic drugs at affordable prices.
The pharmaceutical industry group in Australia, Medicines Australia, is set to take the issue up with the Therapeutic Goods Administration, the regulatory agency for drugs and medical devices in the country.
According to Melbourne-based Centre for Strategic Economic Studies, Around 75% of prenoscription drugs consumed in Australia are provided through the PBS, which is administered by the Australian government. The PBS acts both as a publicly funded insurance scheme with universal coverage and as a cost-containment programme for the government. It is funded from general revenue and caters to both concessional cardholders who currently contribute a maximum of A$3.70 per prenoscription filled and general patients with a maximum co-payment of A$23.10.
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