Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | New drug policy forces many pharmacies to shut shop -Raji Reddy Kesireddy    </title>
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HYDERABAD: Numerous pharmacies - especially those operating on rented space - are shutting down across the country, hurt by a sharp decline in margins after the introduction of a new pricing policy for medicines and intense competition from..."/>
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                            <div align="justify">-The Economic Times</div><p align="justify"><br /><em>HYDERABAD: </em>Numerous pharmacies - especially those operating on rented space - are shutting down across the country, hurt by a sharp decline in margins after the introduction of a new pricing policy for medicines and intense competition from bigger players.</p><p align="justify">The new Drug Price Control Order (DPCO), which was notified on May 15, has made the prices of some 150 drugs fall steeply. Under this, companies and retailers are forced to keep drugs at particular prices, which are arrived at using a formula.</p><p align="justify">Industry bodies said the DPCO reduced prices by an average 20-25%; in some cases, it was as high as 80%.</p><p align="justify">This has led to a sharp contraction in margins earned by pharmacies, which now stands at about 16% for most drugs. Pharmacy owners complain this is too little, especially considering the high cost of rent in cities like Mumbai.</p><p align="justify">&quot;Survival of the retail medical stores has become a question mark,&quot; said JS Shinde, president of the All India Organisation of Chemists and Druggists (AIOCD), which has about 7.5 lakh chemists as members. He said 100-120 medical stores have shut shop in Mumbai after the implementation of the new pricing mechanism.</p><p align="justify">Arvind Bothra, an analyst with Mumbai-based brokerage Religare, said: &quot;Lower margins could drive out some chemists, especially those operating on rental premises.&quot;</p><p align="justify">To beat the squeeze on margins, the bigger pharmacy chains - such as Apollo Pharmacy, Hetero and Med-Plus - have changed tack and are now focusing on their own labels and getting discounts on drugs using economies of scale. For instance, Apollo now sells its own brand of shaving lotion and condoms.</p><p align="justify">&quot;Thanks to steep reduction in prices of 150 drugs, the margins are quite alarming given the high cost of operations,&quot; said B Venkat Raju, joint secretary and convener of AIOCD in the south.</p><p align="justify">While AIOCD declined to give details on the number of shops shut down in the region, experts said it could run into a few hundreds. &quot;It becomes difficult to run operations if retailers don't get at least Rs 5,000 a day in Mumbai and at least Rs 3,000 a day in cities like Hyderabad,&quot; said AIOCD national president Shinde.</p><p align="justify">Shobana Kamineni, executive director of Apollo Hospitals and head of its pharmacy business, said the group had stopped giving discounts on the drugs that had come under pricing control. She said the group is going to add another 300 outlets this year to its existing network of 1,550. Madhukar Gangadi, chief executive of MedPlus, a pharmacy retail chain with some 1,070 outlets, said the drugs whose prices were slashed formed some 20% of pharmacies' product portfolio.</p><p align="justify">A senior executive of Apollo Pharmacy, who did not wish to be identified, said the group was increasing its private label portfolio from less than hundred to some 150 by the end of the year. </p>                                                           
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    <h1 class="cat-box-title">New drug policy forces many pharmacies to shut shop -Raji Reddy Kesireddy</h1>
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                            <div align="justify">-The Economic Times</div><p align="justify"><br /><em>HYDERABAD: </em>Numerous pharmacies - especially those operating on rented space - are shutting down across the country, hurt by a sharp decline in margins after the introduction of a new pricing policy for medicines and intense competition from bigger players.</p><p align="justify">The new Drug Price Control Order (DPCO), which was notified on May 15, has made the prices of some 150 drugs fall steeply. Under this, companies and retailers are forced to keep drugs at particular prices, which are arrived at using a formula.</p><p align="justify">Industry bodies said the DPCO reduced prices by an average 20-25%; in some cases, it was as high as 80%.</p><p align="justify">This has led to a sharp contraction in margins earned by pharmacies, which now stands at about 16% for most drugs. Pharmacy owners complain this is too little, especially considering the high cost of rent in cities like Mumbai.</p><p align="justify">&quot;Survival of the retail medical stores has become a question mark,&quot; said JS Shinde, president of the All India Organisation of Chemists and Druggists (AIOCD), which has about 7.5 lakh chemists as members. He said 100-120 medical stores have shut shop in Mumbai after the implementation of the new pricing mechanism.</p><p align="justify">Arvind Bothra, an analyst with Mumbai-based brokerage Religare, said: &quot;Lower margins could drive out some chemists, especially those operating on rental premises.&quot;</p><p align="justify">To beat the squeeze on margins, the bigger pharmacy chains - such as Apollo Pharmacy, Hetero and Med-Plus - have changed tack and are now focusing on their own labels and getting discounts on drugs using economies of scale. For instance, Apollo now sells its own brand of shaving lotion and condoms.</p><p align="justify">&quot;Thanks to steep reduction in prices of 150 drugs, the margins are quite alarming given the high cost of operations,&quot; said B Venkat Raju, joint secretary and convener of AIOCD in the south.</p><p align="justify">While AIOCD declined to give details on the number of shops shut down in the region, experts said it could run into a few hundreds. &quot;It becomes difficult to run operations if retailers don't get at least Rs 5,000 a day in Mumbai and at least Rs 3,000 a day in cities like Hyderabad,&quot; said AIOCD national president Shinde.</p><p align="justify">Shobana Kamineni, executive director of Apollo Hospitals and head of its pharmacy business, said the group had stopped giving discounts on the drugs that had come under pricing control. She said the group is going to add another 300 outlets this year to its existing network of 1,550. Madhukar Gangadi, chief executive of MedPlus, a pharmacy retail chain with some 1,070 outlets, said the drugs whose prices were slashed formed some 20% of pharmacies' product portfolio.</p><p align="justify">A senior executive of Apollo Pharmacy, who did not wish to be identified, said the group was increasing its private label portfolio from less than hundred to some 150 by the end of the year. </p>                                                           
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    <br><a href="http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/pharmaceuticals/new-drug-policy-forces-many-pharmacies-to-shut-shop/articleshow/232" class="re" target="_blank">The Economic Times, 30 September, 2013, http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/pharmaceuticals/new-drug-policy-forces-many-pharmacies-to-shut-shop/articleshow/232</a><div class="clear"></div>
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        LATEST NEWS UPDATES | New drug policy forces many pharmacies to shut shop -Raji Reddy Kesireddy    </title>
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HYDERABAD: Numerous pharmacies - especially those operating on rented space - are shutting down across the country, hurt by a sharp decline in margins after the introduction of a new pricing policy for medicines and intense competition from..."/>
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-The Economic Times



HYDERABAD: Numerous pharmacies - especially those operating on rented space - are shutting down across the country, hurt by a sharp decline in margins after the introduction of a new pricing policy for medicines and intense competition from..." />
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    <h1 class="cat-box-title">New drug policy forces many pharmacies to shut shop -Raji Reddy Kesireddy</h1>
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                            <div align="justify">-The Economic Times</div><p align="justify"><br /><em>HYDERABAD: </em>Numerous pharmacies - especially those operating on rented space - are shutting down across the country, hurt by a sharp decline in margins after the introduction of a new pricing policy for medicines and intense competition from bigger players.</p><p align="justify">The new Drug Price Control Order (DPCO), which was notified on May 15, has made the prices of some 150 drugs fall steeply. Under this, companies and retailers are forced to keep drugs at particular prices, which are arrived at using a formula.</p><p align="justify">Industry bodies said the DPCO reduced prices by an average 20-25%; in some cases, it was as high as 80%.</p><p align="justify">This has led to a sharp contraction in margins earned by pharmacies, which now stands at about 16% for most drugs. Pharmacy owners complain this is too little, especially considering the high cost of rent in cities like Mumbai.</p><p align="justify">&quot;Survival of the retail medical stores has become a question mark,&quot; said JS Shinde, president of the All India Organisation of Chemists and Druggists (AIOCD), which has about 7.5 lakh chemists as members. He said 100-120 medical stores have shut shop in Mumbai after the implementation of the new pricing mechanism.</p><p align="justify">Arvind Bothra, an analyst with Mumbai-based brokerage Religare, said: &quot;Lower margins could drive out some chemists, especially those operating on rental premises.&quot;</p><p align="justify">To beat the squeeze on margins, the bigger pharmacy chains - such as Apollo Pharmacy, Hetero and Med-Plus - have changed tack and are now focusing on their own labels and getting discounts on drugs using economies of scale. For instance, Apollo now sells its own brand of shaving lotion and condoms.</p><p align="justify">&quot;Thanks to steep reduction in prices of 150 drugs, the margins are quite alarming given the high cost of operations,&quot; said B Venkat Raju, joint secretary and convener of AIOCD in the south.</p><p align="justify">While AIOCD declined to give details on the number of shops shut down in the region, experts said it could run into a few hundreds. &quot;It becomes difficult to run operations if retailers don't get at least Rs 5,000 a day in Mumbai and at least Rs 3,000 a day in cities like Hyderabad,&quot; said AIOCD national president Shinde.</p><p align="justify">Shobana Kamineni, executive director of Apollo Hospitals and head of its pharmacy business, said the group had stopped giving discounts on the drugs that had come under pricing control. She said the group is going to add another 300 outlets this year to its existing network of 1,550. Madhukar Gangadi, chief executive of MedPlus, a pharmacy retail chain with some 1,070 outlets, said the drugs whose prices were slashed formed some 20% of pharmacies' product portfolio.</p><p align="justify">A senior executive of Apollo Pharmacy, who did not wish to be identified, said the group was increasing its private label portfolio from less than hundred to some 150 by the end of the year. </p>                                                           
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    <br><a href="http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/pharmaceuticals/new-drug-policy-forces-many-pharmacies-to-shut-shop/articleshow/232" class="re" target="_blank">The Economic Times, 30 September, 2013, http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/pharmaceuticals/new-drug-policy-forces-many-pharmacies-to-shut-shop/articleshow/232</a><div class="clear"></div>
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New drug policy forces many pharmacies to shut shop -Raji Reddy Kesireddy

Published on Sep 30, 2013   Modified on Sep 30, 2013

-The Economic Times HYDERABAD: Numerous pharmacies - especially those operating on rented space - are shutting down across the country, hurt by a sharp decline in margins after the introduction of a new pricing policy for medicines and intense competition from bigger players. The new Drug Price Control Order (DPCO), which was notified on May 15, has made the prices of some 150 drugs fall steeply. Under this, companies and retailers are forced to keep drugs at particular prices, which are arrived at using a formula. Industry bodies said the DPCO reduced prices by an average 20-25%; in some cases, it was as high as 80%. This has led to a sharp contraction in margins earned by pharmacies, which now stands at about 16% for most drugs. Pharmacy owners complain this is too little, especially considering the high cost of rent in cities like Mumbai. "Survival of the retail medical stores has become a question mark," said JS Shinde, president of the All India Organisation of Chemists and Druggists (AIOCD), which has about 7.5 lakh chemists as members. He said 100-120 medical stores have shut shop in Mumbai after the implementation of the new pricing mechanism. Arvind Bothra, an analyst with Mumbai-based brokerage Religare, said: "Lower margins could drive out some chemists, especially those operating on rental premises." To beat the squeeze on margins, the bigger pharmacy chains - such as Apollo Pharmacy, Hetero and Med-Plus - have changed tack and are now focusing on their own labels and getting discounts on drugs using economies of scale. For instance, Apollo now sells its own brand of shaving lotion and condoms. "Thanks to steep reduction in prices of 150 drugs, the margins are quite alarming given the high cost of operations," said B Venkat Raju, joint secretary and convener of AIOCD in the south. While AIOCD declined to give details on the number of shops shut down in the region, experts said it could run into a few hundreds. "It becomes difficult to run operations if retailers don't get at least Rs 5,000 a day in Mumbai and at least Rs 3,000 a day in cities like Hyderabad," said AIOCD national president Shinde. Shobana Kamineni, executive director of Apollo Hospitals and head of its pharmacy business, said the group had stopped giving discounts on the drugs that had come under pricing control. She said the group is going to add another 300 outlets this year to its existing network of 1,550. Madhukar Gangadi, chief executive of MedPlus, a pharmacy retail chain with some 1,070 outlets, said the drugs whose prices were slashed formed some 20% of pharmacies' product portfolio. A senior executive of Apollo Pharmacy, who did not wish to be identified, said the group was increasing its private label portfolio from less than hundred to some 150 by the end of the year.

The Economic Times, 30 September, 2013, http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/pharmaceuticals/new-drug-policy-forces-many-pharmacies-to-shut-shop/articleshow/232

Tagged with: Health medicines

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