Pakistan Pharmaceutical Manufacturers' Association (PPMA) Acting Chairman Zahid Saeed, while talking exclusively to Business Recorder, claimed that the domestic market was facing a shortage of medicines containing ephedrine compound.
"Around 100 companies in Pakistan have been using ephedrine compound in manufacturing medicines especially in cough syrups and psychotropic medicines for the last 20 years. These companies are being provided a limited quota of ephedrine on yearly basis by the government. But due to ongoing ephedrine scandal, the government did not release any quota of ephedrine to the pharma sector in January 2012 that has caused shortage of the medicines containing ephedrine compound in the domestic market.
In May 2012, the government released just 40-50 percent of the quota to some medicine companies. Now as it takes usually two and a half months to import raw material and manufacture the medicines, so from July 2012, drugs containing ephedrine will be available in the market", the Chairman added.
The Chairman said, "The Drug Regulatory Agency Ordinance (DRAO) that was promulgated on February 16 has still not been presented in the National Assembly in order to convert it to an 'Act'. The pharma sector will have to pay a heavy price if DRA is not given the status of an Act."
"The pharmaceutical sector is operating under a tax regime where taxes have been paid at the input stage whereas the burden of the paid taxes could not be recovered from the consumers. The end product ie products/drugs are exempted from sales tax, therefore tax paid at input stage can not be recovered. We have paid about Rs 30-35 billion as taxes in the current fiscal year", the Chairman revealed.
He said, "Review of the existing policy of 'Contract manufacturing' will be highly beneficial for access of the national pharmaceutical sector in the international market that would result in increase in exports. In 2010-11, the pharmaceutical sector added 170 million dollars to the national exchequer while the sector added 200 million dollars to the national exchequer from exports in 2011-12. The sector has decided to enhance its exports to 500 million dollars by 2013".
There are about 400 pharmaceutical units and about 70,000 drugs registered in the country. Indian pharmaceutical sector is six times bigger than Pakistan's. After devolution of the health ministry, registration and licensing of new medicines, companies and products has become a major issue.
The Ministry of National Regulations and Services has advised a multinational pharmaceutical company to reduce the price of their product rather than selling it on the basis of 'buy one get one free offer' within a week to avoid any adverse action by the government.
Well-informed sources told Business Recorder here on Wednesday that the Ministry of National Regulations and Services in the Pricing Committee meeting, held here on June 19, had warned a multinational pharmaceutical company to end the offer of 'buy one get one free' from its product, within one week and instead to reduce the price to provide maximum benefit of price concession to the patients. Otherwise the government may be compelled to take steps in this regard. "The Pricing Committee has also decided to take all the four provinces on board to work on 'pricing policing' in order to avoid issues related to the pricing of drugs in future", sources added.
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