The government has delayed the implementation of the drug discounts and price adjustment rules, 2006 until June this year. Sources told Business Recorder here on Monday that the decision was taken in a meeting of federal drug controller with the members of Pakistan Pharmaceutical Manufacturers' Association (PPMA) held on February 2 in Islamabad.
The meeting had delayed the implementation of SRO 1103910/2006 ie 'The Drugs Discounts and Price Adjustment Rules, 2006' till June 2007 after the protest of the PPMA and other stakeholders saying such rules would deprive masses from cheaper drugs and it would affect the availability of drugs at government hospitals. The government had issued the SRO to bind the pharma companies for allowing discounts or adjusting prices to its clients.
The SRO stated: No Company or firm or proprietor shall allow a sum of all discounts, in cash, kind or both, exceeding forty percent of the maximum retail price printed on the pack of the drug. The method of price adjustment was explained: Every company or firm shall adjust the prices of its registered drugs, provided that:
(a) downward and upward adjustment of the drug prices shall take place with in the maximum retail price fixed by the federal government;
(b) the company of firm shall make upward or downward adjustments in prices, if they so desire, after the expiry of one year from the date of last adjustment;
(c) the Ministry of Health shall be informed in advance of the adjustment in prices and the effective date for such adjusted price; and
(d) there shall be no other change in the approved labelling of the drug.
The SRO further stated: the drug, the price of which is not fixed in accordance with the rules shall be de-registered after giving an opportunity of being heard to the concerned company or firm, as the case may be. The PPMA strongly protested over the SRO and complained that the rules would deprive masses of accessing cheap price drugs.
The pharma manufacturers' stated that the companies were supplying drugs to government hospitals on cheaper prices and after the implementation of the SRO the companies would not able to supply on existing prices.
After realising that patients would suffer due to implementation the government had decided to delay its plan till June 2007, sources said. The government would amend several sections of the rules causing disturbance to the pharmaceutical manufacturers and other stakeholders. Sources said that the proposed rules would another dent to the dying pharma industry, which already facing hardship against low and substandard imported drugs.
However, the PPMA lauded the efforts of the drugs controller, Dr Farnaz Malik for timely decision to delay the rules and ensuring the rules would be amended according to masses benefit. The PPMA also appreciated the federal health ministry for taking notice of the local pharmaceutical manufacturers' grievances, which have $1.6 billion market.
The association demanded of the government that the import of drugs, which are already manufactured in the country, should be banned. The association also feared that once the import of finished drugs allowed in the country, Indian and Chinese companies would flood the market and it would kill the domestic industry, sources feared.
In this regard government had started to liberalise its import policy and the current year was very crucial for the local industry. A PPMA office bearer said that a local 'non-governmental organisation (NGO)' had started a campaign to defame the local industry and to promote imported drugs.
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