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Govt pays New GPC six times retail cost for pharmaceuticals

June 10, 2012 | By | Filed Under News 

 

Last year, when the government awarded a $311M contract to the New Guyana Pharmaceutical Corporation, importers found that some of the prices put forward by the entity were exorbitant; that the government was paying much more than it should for some of the pharmaceuticals being imported.
They noticed for example that the cream, Ketoconazole, which was imported in 15g and 30g containers, was priced by the importer at $2,000 per tube while the local retailers were offering the cream to the public for $140 and $300, the latter being the retail value.
These items were imported in large quantities and a casual inspection revealed that the importer priced the contract at $50 million more than what it should have been.
Ketoconazole is used to treat fungal infections such as dandruff and athlete’s foot, jock itch and similar ailments.
More recently, an inspection of a shipment of Omeprazole, which is imported in 20 milligram and 28 milligram packets, also found huge price discrepancies.
The importing company, New Guyana Pharmaceutical Corporation, is charging the government as much as six times the retail price of the drug on the local market.
Omeprazole is used in medicine to treat Gastro esophagel reflux disease, gastric and duodenum ulceration and gastritis. Simply put, it treats ulcers and what the ordinary people call β€˜burnt stomach’.
A source said that the New Guyana Pharmaceutical Corporation charges $1,909 per tube while International Pharmaceutical Corporation retails the drug at $364 per tube.
Head of International Pharmaceutical Agency, Lloyd Singh, said that he is analyzing the list of imports provided by the New Guyana Pharmaceutical Corporation and that in the coming days he is going to make the disclosures.
Singh said that his company, IPA, has largely been sidelined by the government in preference of its favourite, the New Guyana Pharmaceutical Corporation.

 
 

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Originally Posted by Prashad:

What the hell is wrong with that.  Every government in the world does that.  It is call protecting your important industries.  Those importers importing from foreign lands should know this.  Eventually one day they will hear "if you want to buy and export our products then you have to do so and so for us".

 Since when this crony is "protected industry"? This is hand wiping backside. The PPP passing laundering state cash through one of their supporters who is a protected buyer and charges inflated prices. It is standard business practice of PPPinc.

FM
Originally Posted by Nehru:
Originally Posted by baseman:

If the Govt overpays GPC with the aim of building them up and most of the value chain and input costs are LVA, then the overpayment is justifiable.


UH?


Nehru bhai, it's called transportation cost for being on the gravy train.  If each toll booth collects 10% of the original cost and there are 10 toll booths to pass thru, then the final landing cost becomes double the original cost. To some it's normal business practice.

Mitwah
Originally Posted by Mitwah:
Originally Posted by Nehru:
Originally Posted by baseman:

If the Govt overpays GPC with the aim of building them up and most of the value chain and input costs are LVA, then the overpayment is justifiable.


UH?


Nehru bhai, it's called transportation cost for being on the gravy train.  If each toll booth collects 10% of the original cost and there are 10 toll booths to pass thru, then the final landing cost becomes double the original cost. To some it's normal business practice.

Overpaying for the sake of GPC "fat cats" are not justifiable over payments.  If there higher costs are due to embryonic local industry input, then there is a rationale as long as there is an end game.  My statement was one of principle and does not justify overpayment at all costs.  To make it credible, a substantive audit should be performed ensuring costs do meet some set criteria.

 

That being said, it does seem strange, but one should not jump to conclusion before seeing the facts.  Could it be also, the Govt prices to GPC is allowing GPC to avail to the retail market at much lower prices?

FM

Any way  you  turn &  twist  and  contort this, it still  has  the strong  &  distinct    appearance of an  incestuous 69   blow job  between    Bobby   and and  the  Govt. $2,000.00 VS  $140 -$300  &  $1,909.00 VS  $364.00 is outrageous scandalous!  In  some  countries ( China, Myanmar)  people would  face  the  firing  squad for  such  bald  face  thievery.

FM
Originally Posted by Mara:

Any way  you  turn &  twist  and  contort this, it still  has  the strong  &  distinct    appearance of an  incestuous 69   blow job  between    Bobby   and and  the  Govt. $2,000.00 VS  $140 -$300  &  $1,909.00 VS  $364.00 is outrageous scandalous!  In  some  countries ( China, Myanmar)  people would  face  the  firing  squad for  such  bald  face  thievery.

I support the firing squad approach.

FM
Originally Posted by baseman:
Originally Posted by Mara:

Any way  you  turn &  twist  and  contort this, it still  has  the strong  &  distinct    appearance of an  incestuous 69   blow job  between    Bobby   and and  the  Govt. $2,000.00 VS  $140 -$300  &  $1,909.00 VS  $364.00 is outrageous scandalous!  In  some  countries ( China, Myanmar)  people would  face  the  firing  squad for  such  bald  face  thievery.

I support the firing squad approach.

 Great! So  would  you  volunteer to  be  a member  of  the  firing  squad?

FM
Originally Posted by Mitwah:

Govt pays New GPC six times retail cost for pharmaceuticals

June 10, 2012 | By | Filed Under News 

 

Last year, when the government awarded a $311M contract to the New Guyana Pharmaceutical Corporation, importers found that some of the prices put forward by the entity were exorbitant; that the government was paying much more than it should for some of the pharmaceuticals being imported.
They noticed for example that the cream, Ketoconazole, which was imported in 15g and 30g containers, was priced by the importer at $2,000 per tube while the local retailers were offering the cream to the public for $140 and $300, the latter being the retail value.
These items were imported in large quantities and a casual inspection revealed that the importer priced the contract at $50 million more than what it should have been.
Ketoconazole is used to treat fungal infections such as dandruff and athlete’s foot, jock itch and similar ailments.
More recently, an inspection of a shipment of Omeprazole, which is imported in 20 milligram and 28 milligram packets, also found huge price discrepancies.
The importing company, New Guyana Pharmaceutical Corporation, is charging the government as much as six times the retail price of the drug on the local market.
Omeprazole is used in medicine to treat Gastro esophagel reflux disease, gastric and duodenum ulceration and gastritis. Simply put, it treats ulcers and what the ordinary people call β€˜burnt stomach’.
A source said that the New Guyana Pharmaceutical Corporation charges $1,909 per tube while International Pharmaceutical Corporation retails the drug at $364 per tube.
Head of International Pharmaceutical Agency, Lloyd Singh, said that he is analyzing the list of imports provided by the New Guyana Pharmaceutical Corporation and that in the coming days he is going to make the disclosures.
Singh said that his company, IPA, has largely been sidelined by the government in preference of its favourite, the New Guyana Pharmaceutical Corporation.

 
 

 

Gerhard and the AFC must bring this up in parliament. Six times the cost while the poor are suffering and cannot have proper health care ?


We must bring in the firing squad.

FM
Originally Posted by baseman:

If the Govt overpays GPC with the aim of building them up and most of the value chain and input costs are LVA, then the overpayment is justifiable.

WHERE is the added value in the importation of large quantities of generics such as Ketoconazole and Omeprazole!!?

 

. . . and what the hell is the market rationale for "building up" a single importer and killing competition in the process. Do we really need a 'national champion' to import fungal creams and heartburn medicine?

 

Some of y'all who 'silently' approve of the PPP grifting like to talk out of y'all arse . . . believing if you use enough jargon people won't notice the foolishness y'all posting.

FM
Originally Posted by redux:
Originally Posted by baseman:

If the Govt overpays GPC with the aim of building them up and most of the value chain and input costs are LVA, then the overpayment is justifiable.

WHERE is the added value in the importation of large quantities of generics such as Ketoconazole and Omeprazole!!?

 

. . . and what the hell is the market rationale for "building up" a single importer and killing competition in the process. Do we really need a 'national champion' to import fungal creams and heartburn medicine?

 

Some of y'all who 'silently' approve of the PPP grifting like to talk out of y'all arse . . . believing if you use enough jargon people won't notice the foolishness y'all posting.

My operative word was "IF".

FM
Originally Posted by baseman:
Originally Posted by redux:
Originally Posted by baseman:

If the Govt overpays GPC with the aim of building them up and most of the value chain and input costs are LVA, then the overpayment is justifiable.

WHERE is the added value in the importation of large quantities of generics such as Ketoconazole and Omeprazole!!?

 

. . . and what the hell is the market rationale for "building up" a single importer and killing competition in the process. Do we really need a 'national champion' to import fungal creams and heartburn medicine?

 

Some of y'all who 'silently' approve of the PPP grifting like to talk out of y'all arse . . . believing if you use enough jargon people won't notice the foolishness y'all posting.

My operative word was "IF".

So . . .?

 

My response was addressed to your hypothetical !!

FM
Originally Posted by Mitwah:

The gravy train keeps on rolling.

Dem PPP bais wutliss no ass.  Dem a impoort cheep ting from india, re-pack am an call big big money.  Mi nah no wah alyuh huttin alyuh head fah up deh, ah abie diss money.  Wan ting mi know, dem nah tief an cyar money ah swiss bank, dem ah build big house rite donk hay.

FM
Originally Posted by yuji22:
Originally Posted by Mitwah:

Govt pays New GPC six times retail cost for pharmaceuticals

June 10, 2012 | By | Filed Under News 

 

Last year, when the government awarded a $311M contract to the New Guyana Pharmaceutical Corporation, importers found that some of the prices put forward by the entity were exorbitant; that the government was paying much more than it should for some of the pharmaceuticals being imported.
They noticed for example that the cream, Ketoconazole, which was imported in 15g and 30g containers, was priced by the importer at $2,000 per tube while the local retailers were offering the cream to the public for $140 and $300, the latter being the retail value.
These items were imported in large quantities and a casual inspection revealed that the importer priced the contract at $50 million more than what it should have been.
Ketoconazole is used to treat fungal infections such as dandruff and athlete’s foot, jock itch and similar ailments.
More recently, an inspection of a shipment of Omeprazole, which is imported in 20 milligram and 28 milligram packets, also found huge price discrepancies.
The importing company, New Guyana Pharmaceutical Corporation, is charging the government as much as six times the retail price of the drug on the local market.
Omeprazole is used in medicine to treat Gastro esophagel reflux disease, gastric and duodenum ulceration and gastritis. Simply put, it treats ulcers and what the ordinary people call β€˜burnt stomach’.
A source said that the New Guyana Pharmaceutical Corporation charges $1,909 per tube while International Pharmaceutical Corporation retails the drug at $364 per tube.
Head of International Pharmaceutical Agency, Lloyd Singh, said that he is analyzing the list of imports provided by the New Guyana Pharmaceutical Corporation and that in the coming days he is going to make the disclosures.
Singh said that his company, IPA, has largely been sidelined by the government in preference of its favourite, the New Guyana Pharmaceutical Corporation.

 
 

 

Gerhard and the AFC must bring this up in parliament. Six times the cost while the poor are suffering and cannot have proper health care ?


We must bring in the firing squad.

Why is the AFC not bring this tiefing up in Parliament is anyone's guess?

FM

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