1. What are PTR and PTS?
In the Indian pharmaceutical pricing framework governed by the National Pharmaceutical Pricing Authority (NPPA) and the Drug Price Control Order (DPCO):
- MRP: Maximum Retail Price printed on the package (inclusive of all taxes).
- PTR (Price to Retailer): The price at which the chemist/medical store buys from the distributor.
- PTS (Price to Stockist): The price at which the pharmaceutical stockist buys from the manufacturer or C&F agent.
2. Standard DPCO Margins & Formulas
By regulation:
- Retailer Margin = 20%
- Stockist Margin = 10%
Formula for PTR:
PTR = (MRP / (1 + GST%)) × (1 - Retailer Margin %)
Formula for PTS:
PTS = PTR × (1 - Stockist Margin %)