Wholesale medicine business shrinking

Shamsul Huda | Published: February 04, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

Medicine manufacturers' direct market penetration has reduced the size of wholesale medicine business by 75 per cent over the last decade, circles concerned have claimed.
"Many wholesale medicine shops have shut down their business for want of customers -- retail drug stores -- as the latter are getting direct delivery of medicines from the manufacturers," they said.
The main divisional markets of Mitford in Dhaka, Hajari Lane in Chittagong, Heraj Market in Khulna and other medium and small wholesale centres in different districts are on the verge of closure due to insufficient number of customers.
They said frequent fixation of medicine prices by the manufacturers and insufficient number of customers have reduced their business by about 75 per cent.
Retail level druggists said despite direct penetration by the manufacturers, the wholesale system needs to be there for availability of medicines across the country. Many companies do not have adequate manpower and logistics to market their products all over the country.
Large manufacturers have resorted to direct marketing to increase their market share, to avoid counterfeiting and reap the maximum profit.
A leader in the drugs manufacturers' association office said competition to have more market share and conscious effort to avoid counterfeiting of their products have led the companies to skip marketing of their products through wholesalers.
He said some dishonest pharmaceutical companies manufacture fake drugs of leading companies and sell them to the customers through wholesale channels.
He said when the end-level users take those counterfeit medicines, they get cheated as the medicines do not work.
A Bangladesh Association of Pharmaceuticals Industries (BAPI) office bearer said foils and blisters of leading companies' products are being copied by some of their corrupt counterparts and they market the sub-standard products to the end-level users in different parts of the country.
Bangladesh Chemists and Druggist Association Vice President Abdul Hai said, "Our wholesale business is shrinking day by day."
Currently two thousand wholesale medicine outlets are there in the Mitford area and their sales volume has dropped by about 70 per cent in the last ten years.
He said many wholesale outlets do not get enough customers and some have been forced to shut their business. They also do not have enough money to purchase drugs as prices of most medicines have double over the last few years.
Mr. Hai said, to ensure sound supply of medicines the wholesale system should be kept active as still except a few leading ones most companies cannot reach each and every place of the country.
"We are against the counterfeiting of drugs by using the wholesale channels," he added.
"We welcome all steps by the government to stop production of spurious drugs by the corrupt manufacturers."
Mr Hai said, still now the retailers from different parts of the country are dependent on wholesale market as they cannot source drugs from the manufacturers.
Another BAPI official said for availability of medicines both the wholesale and direct marketing systems should be continued.
He said in the drug administration should be more vigilant regarding copying of blisters, foils and medicines of branded companies by some unscrupulous companies.
He also said though the commission of wholesalers is higher than direct marketing but in many cases it is necessary for making drugs available to people across the length and breadth of the country.