How high priced are medicines in the market?

The Table below shows high margins of even medicines under price control. Many of LOCOST’s drugs are anything between 200 to 3000 percent cheaper than similar products in the market.

A Comparison of LOCOST’s Cost Price and DPCO 2013 Ceiling Price

Table 1: Comparison of cost price and DPCO 2013 ceiling

Name Total Cost per 10 tabs in Rs DPCO-2013 Ceiling Price as of Feb 2018 per 10 tabs in Rs Col.3/Col.2 in percent
Albendazole 400 mg tabs 11.09 69.90 630
Amlodipine 5 mg tabs 1.24 22.80 1838
Atenolol 50 mg tabs 2.12 16.20 764
Atorvastatin 10 mg tabs 4.02 49.80 1238
Cetirizine 10 mg tabs 1.58 15.00 949

Source: Cost price data from LOCOST, Feb 2018.

We do not cut costs at any stage of formulation or manufacture of medicines - our drugs are cheaper because of modest salaries of management level staff, no fancy secondary and tertiary packing, no trade commissions as there are no middlemen, no or little marketing expenditures and no gifts, etc. to the prescribers.