New provision on medicine import to boost local industry

By a Post Reporter

KATHMANDU, Sept 16 - The Government’s recent decision to levy registration charge for foreign drug manufacturers and firms supplying drugs to Nepal, registration fee for individual brands and their renewal will have positive impact on the struggling local industries, says pharmaceutical manufacturers.

As per the August 17 cabinet decision, Rs 50 thousand will be charged to pharmaceutical company of SAARC countries to supply their products to Nepal, while the charge for countries beyond the SAARC region is 1000 US Dollar. Previously there was no such charge for the foreign drug manufacturer.

Likewise those companies having export recommendation letter to supply drugs to Nepal will be subject to pay one thousand rupees (For SARRC countries) for their individual brands to get registered and 30 US dollar for non-SAARC countries annually. These companies will have to pay 5 hundred rupees ( for SAARC countries) and 15 US Dollar (for non-SAARC countries) to renew their respective brands annually.

Drugs falling under other than life saving category will be registered by paying 15 hundred rupees for SAARC countries and 45 US dollar for other countries for their individual brands.

Likewise to register each generic medicine, a company has to pay just 5 hundred rupees (SAARC Countries) and 15 US Dollar for other countries. To renew each medicine falling under generic category, companies need to pay Rs 250 for SAARC countries and 10 US Dollar for other countries.

For life saving drugs, the companies (SARRC Countries) have to pay 1 hundred rupees for registration and 50 rupees for renewal annually.

Local pharmaceutical companies were raising the demand to levy charges on these medicines for years.

Government officials hope that the new measures will ensure the quality of drugs as per the World Health Organization (WHO) standard and boost the local Pharmaceutical Industries, which are raising their share on local consumption gradually.

Dr Asfak Sheikh, Chief at the Department of Drug Administration hoped that the new measures would raise additional 50 million rupees in revenue.

Local Pharmaceutical manufacturer hailed the decision as "timely and necessary step."

Praeep Jung Pandey, President of Drug Manufacturers Association of Nepal hoped that the minimum charge to register and renew the generic and life saving drugs would make these medicines cheaper and help the poor. But implementation of these rules must be stern, cautioned Pandey.

Nepalese Pharmaceutical companies have a share of around 30 percent in the domestic market. More than 435 Indian companies with their approximately four thousand brands are supplying Drugs
to Nepal.

Newsprint import through Birgunj customs doubles

By a Post Reporter

BIRGUNJ, Sept 16 - The import of newsprint from overseas has nearly doubled in the fiscal year 1999/2000 in comparison to the previous financial year.

According to statistics provided by Birgunj Customs Office Nepal imported 1 thousand and 32 tons of newsprint worth Rs 55.4 million and 36 thousand from overseas in the fiscal year 1998/99. The figure approximately doubled in the following financial year. Two thousand eight hundred and 64 tons of newsprint worth Rs 105 million and 89 thousand was imported into the country from overseas through the customs point in fiscal year 1999/2000.

According to the customs officials, newsprint is imported mainly from Bangladesh and former Soviet nations.

Nepal also imports newsprint from India in addition to the third countries. In fiscal year, 1998/99 newsprint worth Rs 969 thousand from India through this customs points. The import of newsprint from India also increased by almost two folds in fiscal year 1999/2000 which was worth Rs 1.7 million and 98 thousand.

Apart from newsprint, Nepal also imported other papers and paper products worth millions of rupees from countries other than India. Recovered paper worth Rs 344 thousand, writing/printing paper worth Rs 83 million, craft paper worth Rs 3.5 million, paper board worth Rs 1.1 million, cigarette paper worth Rs 261 million, facsimile paper worth Rs 51 thousand, toilet paper worth Rs 8.9 million, paper napking worth Rs 561 thousand, paper carton worth Rs 568 thousand and paper label worth Rs 4.4 million in fiscal year 1999/2000 through this customs point.

In addition to newsprint worth Rs 5.7 million imported from India in fiscal year 1999/2000, the country imported writing/printing paper worth Rs 166 million, craft paper worth Rs 61 million, duplex paper board worth Rs 21 million, paper wrapper worth Rs 57 million and paper carton worth Rs 87 million.

However, Nepal also exported copies worth Rs 33 million to India through this customs point in fiscal year 1999/2000.

RDL to launch new drugs

By a Post Reporter

KATHMANDU, Sept 16 - Royal Drugs Limited (RDL), a fully state-owned enterprise, has announced that it would soon launch around one dozen of new medicines to meet the growing demand of high quality drugs.

Rajendra B Tuladhar, Acting General Manager of RDL informed that the new varieties of medicines would be introduced on the occasion of its 27th anniversary.

"The chief objective behind launching new medicines is to serve the consumers with international quality drugs that have high demand," he said.

RDL has been producing more than ninety varieties of inexpensive yet high quality drugs including Jeevan Jal, an oral dehydration and Paracetamol.

Concerned experts say that launching new products which would have high demand would be comparatively expensive. And it also signals the private pharmaceuticals that RDL is going compete with them producing expensive drugs.

Though our production is high, the total transaction has decreased due mainly to comparatively low priced drugs, Tuladhar said.

"Being a public enterprise, we do have many limitations in adopting marketing strategy," he said.

Established in 1972 with the objectives of producing high quality and essential drugs, the RDL, last year sold drugs worth Rs 93 million in the domestic market.

RDL has targeted to sell medicines worth Rs 180 million this fiscal year. RDL has a mere 10 percent market share in domestic medicine.

Tuladhar admits that the sale of RDL last year went gone down as compared to previous year but said that the company is still not in a loss.

More than 70 percent of its products are essential medicines as categorized by World Health Organization. Talking about the quality of production, Tuladhar said, "In fact maintaining the quality of drugs is more challenging than producing them for a pharmaceutical".

He added that with a well equipped laboratory and highly trained manpower, its entire products are at par with the international standard. However, top officials at the RDL accepted that the present production procedures of RDL has not yet met Good Manufacturing Practices (GMP) standard. Despite budget constraint, that they are going to install many new equipment.

RDL has cent percent foreign dependency for the imports of raw materials and majority of the semi-finished raw materials are imported from China and India.