CHENNAI: Outlets of the Mudhalvar Marundhagam (Chief Minister’s Pharmacy), inaugurated last month by Chief Minister M K Stalin across Tamil Nadu, seem to be selling medicines at lower prices not only compared to private pharmacies but also the Pradhan Mantri Bhartiya Jan Aushadhi Kendra (Jan Aushadhi) outlets, which operate on a similar model under the union government.
A comparison of commonly-used medicines for diabetes, hypertension, and cholesterol purchased by TNIE from outlets in Chennai revealed that generic medicines at CM’s Pharmacies are roughly 30% cheaper than those at Jan Aushadhi outlets. The price difference appears to stem from two factors: the easy availability of generics in CM’s Pharmacies and discounts of up to 25%, which are not offered at Jan Aushadhi outlets.
While the Jan Aushadhi outlets are expected to sell generic medicines, visits to three stores in Chennai showed that the staff offered branded generics by default—which are costlier than generics—and provided generic alternatives only upon insistence. In contrast, CM’s Pharmacies dispensed generics by default in the outlets visited by TNIE.
Generics refer to drugs sold under their chemical formulation names, while branded generics are the same drugs marketed under brand names of companies. Both contain identical active ingredients and are considered bioequivalents.
However, branded generics may differ in inactive ingredients like binders and fillers.
Even when comparing generic medicines, CM’s Pharmacies were cheaper, primarily due to the discount. (The packaging of generics differed between the two, suggesting different manufacturers.) For instance, Metformin 850mg, a first-line diabetes drug, costs Rs 13.3 for 10 tablets at CM’s Pharmacies but Rs 19.8 at Jan Aushadhi outlets. Similarly, Telmisartan 40mg (hypertension medication) is priced at Rs 8.7 and Rs 12 respectively, and Atorvastatin 10mg (cholesterol medication) sells for Rs 5.9 and Rs 8.8 per 10 tablets respectively.
As a result, CM’s Pharmacies appear to be gaining more traction among consumers. During TNIE’s visit to the outlet in Pondy Bazaar, a customer was seen inquiring about bulk monthly orders for medications treating conditions like cancer, diabetes, and hypertension. A sales executive noted that such requests have become frequent, as patients on long-term medication seek to reduce their expenses.
A S M Manzoor, a customer at the pharmacy, pointed out that Pantoprazole 40mg (for stomach ulcers) costs `8 (10 tablets) at the CM’s Pharmacy, whereas the same drug sells for around `95 (10 tablets) at private pharmacies. Branded drugs in private pharmacies generally cost significantly more than at both CM’s Pharmacies and Jan Aushadhi outlets.
According to officials from the cooperative department which is overseeing the scheme, CM’s Pharmacies currently sell 206 types of medicines, predominantly generics along with a few branded generics. While discounts are offered on branded generics as well, they may be lower than the 25% available on generics.
“We carry only a limited selection of branded drugs. For some brands, we must maintain margin prices, which may reduce the discount slightly below 25%. Some consumers demand specific brands. We will adjust procurement and pricing based on demand and sales trends,” a senior official explained.
Procurement differs between product categories, sources said. Generic medicines are sourced through open tenders by the Tamil Nadu Medical Services Corporation (TNMSC), a pioneering organisation in drug procurement which supplies all government hospitals in the state.
Branded drugs, nutraceuticals and AYUSH medicines are procured by the Tamil Nadu Consumers’ Co-operative Federation. V V L Narayana Aitam, nodal officer, Jan Aushadi Kendras, Tamil Nadu, Puducherry and Andaman and Nicobar, said strict actions would be taken against outlets violating guidelines by selling branded generics due to customer demand.