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RHSC MDA WORKING GROUP

RHSC MDA WORKING GROUP. October 1 st 2007 - Washington. Quality Contraceptives at Affordable Prices –. Famy Care Limited India. Aims of the Public Sector / NGOs / Donors. Bridging the gap between contraceptive need and contraceptive availability.

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RHSC MDA WORKING GROUP

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  1. RHSC MDA WORKING GROUP October 1st 2007 - Washington

  2. Quality Contraceptives at Affordable Prices – Famy Care Limited India

  3. Aims of the Public Sector / NGOs / Donors • Bridging the gap between contraceptive need and contraceptive availability. • Ensuring availability of quality contraceptives at affordable prices. • Availability of the full range / choice of the method mix. • Long term sustenance of family planning programs.

  4. Needs of the corporate supplier • Continued and sustainable long term business model. • Reasonable profit margins. • Security of payments. • Level Playing field in institutional businesses.

  5. Thoughts on bringing both the needs closer • WHO Pre-qualification is a welcome step – means that serious quality minded players get a level playing field. Also, this becomes a standard for quality comparisons universally. We hope the donors like World Bank, DFID and KfW would be agreeable to this pre-qualification as essential for bidder eligibility. • No “free lunch” approach - Contraceptives should not be distributed free of cost. This not only leads to pilferage and wastage, but also adversely affects trade markets for these products. This will also help towards long term sustainability as there would be partial cost recovery.

  6. Contd… • At the same time, a mechanism for ensuring that poor people do not suffer from lack of contraceptives due to prices, a “coupon” system, maybe? • No brand buying for MOH purchases – this could result in large cost savings. A Government brand, similar to India or Bangladesh, would help in keeping competition alive and at the same time ensure that there is no dependence on a single supplier.

  7. What the manufacturers could do? • Evolve an acceptable public sector pricing such that the prices, while affordable, would not be ridiculously low so as to affect quality. • Work closely with the customer for promotional and awareness campaign materials in the country. • Work closely with the logistics division of the Ministry of Health to determine stock situations and plan procurement well in advance so as to avoid emergency procurement or stock outs

  8. What the donors / NGOs could do? • The PSP approach is a positive step forward, where the donors help create a second tier brand for manufacturers to offer a sustainable “not so high” priced product in the trade market. • A focused approach to this program may yield results in key target countries where CPR is low, poverty is high and the unmet need for contraceptives is high. • NGOs could leverage their distribution channels to shift to a “cost recovery model” and maybe a “for profit model” so that donor dependence is reduced. Related products catering to the same client could also be added to the product basket.

  9. Contd… • Need for Social Marketing Companies to leverage commercial models to achieve sustainability rather than address the poorest in the Society, which in any case is the role of the Government. • Provide funds for generic companies for R & D into newer technologies so as to be able to offer choice of method mix at affordable prices in the public sector. Also, funds could be provided for market surveys pre-product launch in a country.

  10. Famy Care Limited – An introduction • A reproductive health manufacturer and supplier of IUDs, Oral contraceptives and injectibles. • Supplies its products (more than 150 million cycles of OCs annually) in 40 countries across Asia, Africa and Latin America. • Supplies to NGOs like PSI,DKT,IPPF and Marie Stopes. • Has a wide range of contraceptive pills both for the institutional as well as the trade markets. • Approved suppliers to UNFPA and PAHO.

  11. FCL’s views on Contraceptive Security and our strategy • We believe that there should be no citizen of the world who should be unable to use contraceptives, because she cannot afford it. • To this end, our endeavor has been to make our products as affordable as possible to the buyers like MOH, and NGOs. • We have been proactively working with all the NGOs relevant to reproductive healthcare to understand their needs and provide commodities at affordable prices. • We are also planning to expand into as many other contraceptive methods as possible so that we could be the “One Stop Shop” for generic contraceptives globally.

  12. Contd… • In order to have long term sustainability and profitability, we are also working on providing third generation OCs in the trade markets in many countries. This helps us cross subsidize products being supplied at lower prices to MOHs. • We are also working closely with NGOs on “full cost recovery” and “for profit” models in some countries.

  13. THANK YOU

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