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CUTS INTERNATIONAL. Status presentation on BRCC project- Gujarat. 26 th June, 2012. Presentation P oints. About Raman Development Consultants (RDC) Overview of Pharma sector in Gujarat Team RDC- BRCC Project, Gujarat Regulations & Process in Pharma sector

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Status presentation on BRCC project- Gujarat


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    1. CUTS INTERNATIONAL Status presentation on BRCC project- Gujarat 26th June, 2012

    2. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Presentation Points • About Raman Development Consultants (RDC) • Overview of Pharma sector in Gujarat • Team RDC- BRCC Project, Gujarat • Regulations & Process in Pharma sector • Sample framework of the research study • Approach and methodology • Interim findings of the study • Social, Environmental & Economical impact

    3. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 About RDC • 22 year old organization registered under Company’s Act, 1956 • Mission: Enhancing social and entrepreneurial capital of India and other developing countries. • RDC has completed more than 800 projects and worked with all major donor agencies and government agencies in India across more than 25 states and also in 7 South Asian countries. • Head Office at Ahmedabad, National Office at Delhi and representative offices in 9 states of India • Focused sectors: Public health, Infrastructure development and public-private partnership, Urban development, Governance & institutional development, Sustainable livelihood, Disaster mitigation. • Services: Policy and strategy development, Behavioral/biological/ social Research, Monitoring & Evaluation, programme design and management, training and capacity building, system design,, MIS, communication/constituency building and development

    4. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Overview of Pharma sector in Gujarat • India’s 2nd domestic Pharmaceutical unit estd. in 1907 • 42% of total Indian Pharmaceutical turnover with valued 4.3 billion US$ (21500 crore INR) • 35 to 46 % share in total Pharma production in India • 22 % of total export of the country • 60000 Employment in the sector • 6 Pharma sanctioned SEZs in the state • 37 Pharma Academic Institutes having 2375 students intake

    5. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Pharma Licenses/Units in Gujarat Source : FDCA - Gujarat

    6. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Team RDC- BRCC Project- Gujarat

    7. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Regulations- Policy, Act, Norm, Authority

    8. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Process of Pharmaceutical sector Continue in next slide

    9. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012

    10. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Approach and Methodology

    11. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Sample size for Pharma sector Source : Department of Pharmaceutical, GoI- 2010

    12. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Sample size for Private hospital

    13. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Status of field work Status as on 18th June, 2012

    14. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Common observations

    15. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Interim findings • Good Manufacturing Process (GMP): Majority of firms are aware about the GMP but general consensus is low rate of compliance in the different segments. • Safe environmental initiative: It is common belief that only bulk drug production units are responsible for environmental pollution. Setups for effluent treatment is not sufficient in the plant or not in working condition. • Regulations: low proactivity for self-regulation, weak system of penalties leading to unethical practice. • Firms are in favor of strict implementation of regulations with generation of transparency in the system.

    16. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Interim findings (cont.) • Cuts and commission: well accepted trade and practices • Accepted by Pharma firm as a marketing policy & • Doctors want solicitation • MRs are the instrument for cut practices • Discussion about cut practices: no formal sector is willing to discuss about cuts and commission but talking is place in informal settings.

    17. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Interim findings (cont.) • Bio-medical waste rule, 1998: Practice under BMW management is not followed in true spirit. • Inadequate training of hospital staff & improper handling • Irregular monitoring from GPCB • No interaction between GPCB and private hospital • No regulation or formal body that monitor the practice of hygiene/ universal precautions maintenance by hospitals • Expressed need for facilitation meetings & training: early dialogue from GPCB is welcomed with aim to improve access to health and safe practices.

    18. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Interim findings (cont.) • System of BMW service providers is not mature: irregular service, high charge • Lack of healthy competition • Monopolistic nature • There is a need for separate study in service providers • Medical code of Ethics,2002: no mechanism in place to ascertain whether in-house or empanelled doctors comply this regulation. • There is continuous inherent distress between doctors and administration & other support staff • Social capital is fragmented • Rational use of drugs: there is sectorial gap between behavior of doctors and rational use of drugs

    19. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Social impact of violation of business responsibility • Social responsibilities are forgotten in Pharma firms as the budget which would be for CSR is being spent for Marketing • Business values are changing, cuts & commission is well accepted trade practice • Self regulation is becoming second responsibility for the sector • Doctor-patient relationship has lost its spirit, patient has become a costumer for doctor.

    20. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Environmental impact of violation of business responsibility • Ignoring environmental importance in the name of ‘Pharma is a non polluting industry’ • Non availability or inadequate waste treatment and disposal facility, discharge of polluted and hazardous Pharma waste in river or land by small and scattered units.

    21. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Economic impact of violation of business responsibility • Violation of Business Responsibility is responsible for inflation • Patients are paying high cost for medicines - Cost effective health is now dream for poor • The prevailing marketing practices in the sector has lost the competition benefits to consumers • Schemes for C & FA, Gifts for stockiest, Discount for distributors, commissions for doctors and benefits to chemists, but not any/minimal concession for consumers

    22. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Open space

    23. RDC/ CUTS/ BRCC-Gujarat : 26-6-2012 Thank you