Traders get 1000% profit margin on a medicine of Rs 100, shocking disclosure in the report

The most expensive medicines have the highest trade margins.

The most expensive medicines have the highest trade margins. An analysis done by the National Pharmaceutical Pricing Agency (NPPA) has revealed that margins are high especially in those medicines, whose price is above Rs 100 per tablet.

most expensive drugs (Medicines) Has the highest trade margin. An analysis done by the National Pharmaceutical Pricing Agency (NPPA) has revealed that margins especially in those medicines (Margin) more, whose price (Medicine Prices) 100 per tablet is above Rs. Regulator on Friday pharma companies (Pharma Companies) Discussed the way forward for rationalization of margins of traders on non-scheduled medicines. Non-scheduled medicines do not come under the government’s system of price control.

At the same time, Trade Margin Rationalization (TMR) is a means of regulation of prices, in which the limit of trade margin is fixed in the supply chain.

What is Trade Margin?

The trade margin is the difference between the price available to the manufacturers and the maximum retail price (MRP) available to the patients.

As per the presentation made by the regulator on TMR analysis, the trader’s margin increases with the price of the tablet. For example, if the tablet costs up to Rs 2, then the margin will be up to 50 per cent in most brands. Whereas, if its price is between Rs 15 to Rs 25, the margin will be less than 40 percent.

Medicines in the Rs 50-100 per tablet category have a trade margin of at least 2.97 per cent between 50 per cent and 100 per cent. Whereas, the margin of 1.25 percent in this category is 100 to 200 percent. At the same time, the margin of 2.41 per cent medicines remains between 200 per cent and 500 per cent.

According to the NPPA’s presentation, in case of medicines priced above Rs 100 per tablet, the margin of 8 per cent ranges between 200 per cent and 500 per cent, considering the most expensive category. At the same time, the margin of 2.7 percent medicines remains between 500 and 1000 percent. Whereas, 1.48 percent of medicines have a margin of more than 1000 percent.

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The presentation shows that the annual turnover of non-scheduled drugs in India is more than Rs 1.37 lakh crore. It accounts for about 81 percent of India’s pharma market. So the need to limit margin is more. Pharma companies believe that TMR is a good move and with a balanced approach, there will be a big cut in the prices of medicines.