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India can’t bear to lose a single rupee, he said. Indian Council of Medical Research (ICMR) Monday in response to a requested clarification of the distributors’ alleged speculation, exposed through a legal dispute between an importer and a distributor, in the delivery of the COVID-19 antibody rapid test kits.
According to the details provided at the Delhi High Court, kits purchased in China, the delivery cost of which was ₹ 245 per test, were sold to ICMR for ₹ 600 per test, an increase of 145%.
Also read: Coronavirus | Rapid Test Kits Approved by ICMR, Chinese Manufacturers Say
The matter came to light when Rare Metabolics Life Sciences Pvt Ltd and Aark Pharmaceuticals, distributors of the Chinese Wondfo Biotech kits imported by Matrix Labs, approached the High Court recently to resolve the delivery / payment disputes.
The council, in a one-page clarification, noted that it had not made any payments regarding these supplies: “due to the due process followed (the acquisition is not made with an advance amount of 100%).”
Also read: Coronavirus | Confusion about the mismatch in the Ministry of Health, ICMR figures
It should be remembered that this was the first effort by any Indian agency to purchase such kits and that the rate quoted by the bidders was the only benchmark, ICMR said. “Testing is one of the most crucial weapons to combat COVID-19 and ICMR is doing everything possible to accelerate testing. This requires the purchase of kits and their supply to the States. This acquisition takes place when there is a great demand around the world for these test kits and several countries are applying all their power, monetary and diplomatic to acquire them, “he said.
It was also important to understand the background on which ICMR made the purchasing decisions and that the first attempt to purchase these kits did not elicit any response from suppliers. “Our second attempt got adequate responses. Of these responses, taking into account sensitivity and specificity, kits from 2 companies [Biomedemics and Wondfo] were identified for acquisitions. Both had the required international certifications. For Wondfo, the evaluation committee received four offers and the corresponding quotes received were ₹ 1,204, ₹ 1,200, ₹ 844 and ₹ 600. Consequently, the offer of Rs. 600 were considered. Meanwhile, ICMR also tried to purchase kits directly from Wondfo, “ICMR said.
The quotation received from the direct acquisition had some problems, among them: the quotation was FOB (Free on Board) without any commitment in logistics matters. As it was based on a 100% direct advance without any guarantee, there was no commitment to the deadlines and the rates were reported in US dollars without any clause to account for price fluctuations, he said.
Wondfo’s exclusive distributor for India for the kit was selected because they quoted an all-inclusive price for FOB (logistics) without any advance clause. “After receiving some supplies, ICMR again performed quality controls on these kits under field conditions. Based on a scientific evaluation of their performance, the order in question [Wondfo] along with the order regarding another brand that was found to be underperforming it has been canceled, “he said.
Advice to States
ICMR noted that States have been advised to stop using the kits Acquired from Wondfo and Zhuhai Livzon Diagnostics after he found wide variation in his sensitivity despite early promise of good performance for surveillance purposes.
“Several states have purchased rapid antibody test kits and at their request ICMR has also provided these kits with clear instructions that they should be used for surveillance purposes only. Later, some states raised issues regarding their performance during their testing exercise, “he noted.
Subsequently, ICMR evaluated the kits under field conditions and the results have shown wide variation in their sensitivity despite the early promise of good performance for surveillance purposes. “States have now been told not to use these kits and return them to send them back to providers.”
The throat / nasal swab RT-PCR test was the best use for the diagnosis of COVID -19. It caught the virus early and was the best strategy to identify and isolate the individual, ICMR noted.
