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Jan Aushadhi Scheme

Apr 22, 2015

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Over the years, India has developed a strong capability in producing generic medicines in almost all the therapeutic categories. These
medicines are being sold mostly as branded medicines which pushes up the retail price of these medicines. There is still a large population of
poor people in the country which finds it difficult to afford these medicines. In fact access to quality health care is a challenge in a
developing country like India. According to NSO estimates, upto 79% cost of health care in rural areas is due to cost of medicines. This
problem gets further aggravated as upto 80% of expenditure on health care is out-of-pocket. With 65% of Indias population not having
access to modern health care (WHO estimates 2008) the entire problem is compounded several times.
For fulfilment of affordable medicine, a campaign in the name of Jan Aushadhi Campaign has been launched. The aim of this campaign is to
make available quality medicines at affordable prices for all, especially the poor and the disadvantaged. Under this campaign, less priced
quality unbranded generic medicines will be made available through Jan Aushadhi stores which inherently are less priced but are of same and
equivalent quality, efficacy and safety as compared to branded generic medicines.
The generic medicines are being supplied in the first instance by the Central Pharma PSUs which will ensure both quality and timely supply.
Medicines not available currently with the CPSUs will be sourced from quality SME units. This will also give support to the Pharma SME
sectored as well as promote public-private partnership and avenues for achievement of corporate social responsibilities geared towards
affordable Medicare for the masses. The Jan Aushadhi Campaign has now been formalized as Generic Drug Scheme with the approval of the
Planning Scheme.
Under this Scheme, the State Government has to provide space in Government Hospital premises for the running of the outlets (JAS).
Government hospitals, NGOs, Charitable Organisations and public societies like Red Cross Society, Rogi Kalyan Samiti typically constituted for
the purpose can be operating agencies for the JAS. The operating agency for JAS is nominated on the basis of the recommendations of the
State government. Operational expenditure is met from trade margins admissible for the medicines. The State Government has to ensure
prescription of unbranded generic medicines by the Government doctors. The Jan Aushadhi Programme is accordingly a self sustaining
business model not dependent on government subsidies or assistance. It is run on the principle of Not for Profits but with Minimal Profits.
In order to encourage and provide the initial trigger for above, it is envisaged that the Central Government would provide only a one-time
assistance of Rs. 2.00 lakhs as furnishing and establishment costs and further Rs. 50,000 as one time start up cost to NGO etc,. setting up
the Jan Aushadhi Outlet.

Benefits of the Scheme

The Jan Aushadhi Campaign will help:

Improve access to healthcare in as much as cost of treatment would come down substantially. This would enable the Public Health
System to increase the coverage.

Secure a socio-economically viable mechanism/institutional arrangement for efficacious sales of Pharma CPSU products, thereby improving
their viability.

Promote & encourage private industry to sell their quality unbranded generic products through these retail outlets.

Ensuring successful implementation of the Jan Aushadhi campaign would dispel the myth that quality of medicines is linked to price and
demonstrate that quality medicines can be sold at substantially lower prices.

Educate doctors that unbranded generic medicines provide a better option that branded products since quality of generic medicines can be
equally efficacious and safe at much lower prices.

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 Create consumer awareness by involving private, charitable bodies and NGOs by making them part of the campaign.

Reduce promotional cost and profits for the benefit of patients.

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