Fulford (India) Ltd manufactures Genteamicin, Quadriderm, Intron-A, Drogenil and Polaramine Expectorant, which account for half of its turnover. Around Rs 1.25 to Rs 1.5 crore worth of these products are sold by Fulford in the state.

The decision came at the associations second annual convention -- "Pharma stock 98" -- held at Thanjavur recently. The association chairman, Prem Chand Ranka, alleged that the company had been rolling back trade margins "without justification". The trade had been "patiently heeding the companys assurances to restore status quo," said Ranka, "but instead of carrying out the assurances, the companycontinued its adamant stand of persisting with new trade margins."

The association had asked for justification from the company for rolling back the trade margin on Genteamicin from 8 per cent to 6.6 per cent. Fulford was paying a margin of 10 per cent when the said product was introduced. After the product was brought under the purview of the controlled category by the centre, the company, instead of paying 8 per cent trade margin, rolled back the margin to 6.6 per cent, Ranka pointed out. As per the agreements between trade and industry, a trade margin of 8 per cent is applicable to the controlled category products.

On Quadriderm, the company, in a letter addressed to the association, had mentioned that a trade margin of 6.5 per cent was being paid on the pre-1993 price level. It further contended that the price approval was obtained for the product before the launch of the said product in 1984.

The association contends that as per the agreement signed on September 11, 1984 between Fulford and TNPDA,"all new products under Category III included in the Third Schedule of Drugs (prices control) Order 1979 introduced by any of the member companies from on and after January 1, 1983, shall carry a margin of 15 per cent on the MRP to the retailers, and 8 per cent to the companys appointed stockists/distributors." These trade margins will be applicable to the above category of products for batches manufactured on or before October 1, 1984.

The company has been silent on the associations request to clear its stand on the agreement and that criteria for the margin be based on the introduction of the product (January 1984) and on batches manufactured on or after October 1, 1984, when it went into price control.

The association would be boycotting deals with the company till such time the company "corrects its stand and honours the agreements signed with the trade," Ranka stated.