7
Responsibility to customers EPGPKC01052 : AJAL JOSE AKKARA

Responsibility to customers

Embed Size (px)

DESCRIPTION

KMSCL Institute of Drug Studies(KIDS) 'second mover's' strategy

Citation preview

Page 1: Responsibility to customers

Responsibility to customers

EPGPKC01052 : AJAL JOSE AKKARA

Page 2: Responsibility to customers

Case Back Ground

Page 3: Responsibility to customers

Procurement of Medicines – Kerala Government

KMSCL- Invites tender for medicines and surgical instruments for Govt.hospitals.

Govt. follows procurement procedure based mainly on Commercial aspects. There are no effective steps for quality assurance of drugs at tender processing.

A study conducted by KMSCL Institute of Drug Studies(KIDS) reveals that 15 per cent of the drugs procured by the corporation are defective and nearly 25 per cent do not comply with the mandatory guidelines.

Generally established MNC's will quote a higher price compared to local companies/Distributors.

Page 4: Responsibility to customers

Findings.

Big Players generally charge premium compared to local suppliers. Major reasons for such charging is due to their higher cost of establishment as well due to higher R&D, Quality Measures they spend during the initial stages of drug invention.

Local companies more often take a 'second mover's' strategy, so that they do not need to spend any money on R&D.

Though Govt procures low cost drugs, many a times doctors are not inclined to prescribe such Quality Suspect drugs.

For example-In the case of surgical threads doctors advise patients to get the good quality threads from outside, as they do not want to take any risk.

Unless doctors collectively rejected and recommended different products, govt. will not change the supplier. Most of the time, doctors may not take this initiative

Page 5: Responsibility to customers

Doctors Dilemma Is it ethical to prescribe medicine which they believe to be Sub

Standard?

Will they give the same medicines to their kith and kin?

Do the doctor have authority to reject medicines ordered by govt.?

Are all low cost medicines substandard? Should they always rely on premium branded products?

Page 6: Responsibility to customers

Pharma CompaniesDilemma.

Cannot operate at the cost of a local company.

Having spend a lot of time , effort and Money on R&D, they need to recover this cost for many of the products where as the local companies copy the composition from them.

Cannot compromise the Quality to reduce cost.

Page 7: Responsibility to customers

Questions