GST may lead to drug shortage: Kiran Mazumdar-Shaw, Biocon

Biotech major Biocon Chairman and Managing Director Kiran Mazumdar-Shaw today cautioned of possible drug shortage after implementation of GST saying unprepared stockists in the supply chain are refusing to stock medicines.

She said in the run up to the GST, pharmaceutical firms have taken a huge hit on their businesses in June as a result of pharmacists declining to keep stock.

"Our stockists are refusing to stock, the supply chain is also not willing to accept material," Mazumdar-Shaw told television channel CNBCTV18.

Commenting on the possible fallout, she said: "I think bigger impact is the drug shortage that patients are going to face and then we are going to have huge impact on price of drug."

In case of shortage, Mazumdar-Shaw said there is going to be black marketing of drugs and it is a worrying sign.

"Pharmacies are not willing to stock medicines...many of them said they are not prepared for GST that is very scary," she said.

(Courtesy: http://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/gst-may-lead-to-drug-shortage-chemists-not-keeping-stock-kiran-mazumdar-shaw-biocon/articleshow/59392122.cms