Monday, April 1, 2019

Govt plans to specify a unique colour code for generic medicines

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The central government is favourably considering an amendment to the decades-old Drugs and Cosmetics Rules, to specify a separate colour code for generic medicines, from branded medicines.
A generic is a copy of a formerly patented drug. Of two types, branded and unbranded. Generic medicines might or might not have a trade name, as opposed to branded generics. They are made by small and large companies alike but not marketed through the doctor-channel; instead, these are pushed directly into the trade.

A senior government official said they were actively considering a proposal to introduce colour codes on the lines of the red and green dots to differentiate between vegetarian and non-vegetarian food products.

“Generic medicines are gaining popularity and available more easily in the mainstream channel. There is a need to differentiate these from branded generics. At times generic medicines, too, have a trade name and this leads to confusion. To address the issue, the government is considering colour codes and symbols on medicine packs,” he said.

Generic medicines are made by both state-owned and private entities, whether big, medium-sized or small. For big pharmaceutical firms, it is a volume game. They sell these directly to the trade after adding a margin. From the first point of sale (distributor or stockist) to the consumer, the margin in this segment varies from 20 per cent to 90 per cent, says the industry.


 The Pradhan Mantri Jan-Aushadhi scheme aims to provide quality drugs at a 50-90 per cent discount on their branded counterparts. It is because of this price differential between generic and branded medicines that the government also thinks it is important to have a separate colour code.

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