THIRUVANANTHAPURAM: The In-House Drug Bank (IHDB), a pharmacy run by the Sree Avittom Thirunal Hospital Health Education Society at Thiruvananthapuram Government Medical College Hospital, offers the steepest discounts on medicines in the state, that even relief provided by the recent GST cuts can’t match.
Following the GST Council’s decision to reduce GST on all medicines from 12% to 5%, and eliminate the levy entirely for 36 critical life-saving drugs, effective September 22, prices have dropped significantly. Yet, it has nothing on IHDB. For example, Spevigo, an injection used to treat psoriasis, saw its price drop from Rs 20.65 lakh to Rs 18.17 lakh following the tax cut. At IHDB, the same drug is available for Rs 17.36 lakh – which translates to an additional Rs 80,000 in savings.
“We serve around 4,000 people daily, selling medicines worth Rs 10 crore for just Rs 3.5 crore,” said Biju A, IHDB’s chief pharmacist. He expects sales volumes to rise further with the GST relief. However, he emphasised that the financial burden on patients with cancer, lifestyle diseases, and organ transplants remains high. “There needs to be a serious rethink. Taxes on these drugs should be zero, and price controls must be enforced to prevent exploitation. Most patients still pay MRP,” he added.
Since its founding in 1996, IHDB has consistently offered deep discounts. For instance, Erythropoietin drugs, vital for post-kidney transplant anaemia treatment, cost Rs 1,500 in the market but are sold at IHDB for just Rs 99, a staggering 93% discount. Similarly, Ferric carboxymaltose, an intravenous iron supplement priced at Rs 2,000 elsewhere, is available at IHDB for Rs 180 –– half the rate offered by Karunya Community Pharmacy, run by the health department.
IHDB maintains a modest profit margin of 0-5%, capped at Rs 50 per item. With a catalog of around 6,800 drugs, the pharmacy is overseen by the health secretary. Beyond medicines, IHDB also offers essential healthcare equipment –– including BP monitors, nebulisers, wheelchairs, and adult diapers –– at heavily discounted rates.