Indian state plans non-generic drugs procurement for government hospitals

Indian state of Uttar Pradesh is planning to procure non-generic drugs directly from the manufacturing companies for usage in government hospitals in the state.

The state government is formulating a new drug policy that will allow the state health department to procure these drugs for government hospitals, unlike earlier the department used to procure only generic drugs manufactured by companies selected in the drug tender process at the state level.

Principal Secretary of Health and Family Welfare Sanjay Agarwal was quoted by as saying that the idea behind procurement of non-generic drugs is to provide the best quality drugs for chronic diseases in government hospitals.

“The proposal was approved by state’s Health Minister Ahmad Hasan, who wanted that the best quality drugs should also reach the poor people,” said Agarwal.

The state government has allocated a budget of INR45 crore ($8.13m) for procurement of 22 non-generic drugs listed by the department, which will used for ailments like diabetes, cardiac disease, blood pressure as well as some essential anti-biotic drugs, reports the website.

“The companies will enter into a contract with the department wherein they will have to certify that they would not sell these drugs to any other party at a cost lower than the price they are supplying the drugs to UP,” he added.

The non-generic drugs, to be procured by the department, will cost about half the cost of drugs available in the market, according to Agarwal.