Freezing prices till June 2016 at 2013 level: Pharma industry rejects proposed drug pricing policy

Pharmaceutical industry has strongly rejected the proposed drug pricing policy which makes it mandatory for the companies to freeze prices of drugs/medicines till June 2016 at the level of 2013. Official sources told Business Recorder that Ministry of National Health Services Regulation and Co-ordination (MNHSRC) has sent the draft drug pricing policy to the Prime Minister's Office for approval; however the PM has yet to go through the policy due to busy schedule.
The Ministry is awaiting approval for announcement of the new drug pricing policy. Though, MNHSRC claimed the proposed policy was formulated with the consent of various stakeholders including Pakistan Pharmaceutical Manufacturers Association, Pharma Bureau and Pakistan Chemists & Druggists Association however the industry has expressed serious reservations against it.
Chairman Pakistan Pharmaceutical Manufacturers Association Saeed Allah Wala told Business Recorder that the industry has shown its concerns over the proposed drug pricing policy and informed the government in this regard. "The input cost for drug manufacturing has increased manifold since 2001 while the government is going to freeze drug prices till June 2016, which is totally unfair. Such decisions will discourage investors planning future investment in the sector so the government must come up with a vibrant and viable policy", the Chairman added.
He further said that in a meeting with the industry representatives on November 18, the MNHSRC agreed to 15 percent price hike for 45 percent of Pharma products, excluding life saving medicines. The government unilaterally withdrew this decision in its policy, he maintained.
Saeed Allah Wala said, "The industry has asked the government to increase drug prices by 15 percent in a recently held meeting, however, the Ministry has sent the summary to the PM office for approval erroneously maintaining that all the stakeholders were taken onboard while formulating the proposed policy under which drugs prices shall be frozen till June 2016 at their 2013 levels".
The industry sent a letter to the Ministry, urging the government to review its decision and requested a meeting with the stakeholders to address their concerns. The Policy Board of the Drug Regulatory Authority of Pakistan commented that only after thorough deliberations with all stakeholders (including Pakistan Pharmaceutical Manufacturers Association, Pharma Bureau, Pakistan Chemists & Druggists Association along with public sector stakeholders including Ministries of Commerce, Industries, Finance and Board of Investment) was the draft policy finalised.
According to the Ministry, a striking feature of the new policy is that it has done away with discretion and role of officials in determining or revising prices of drugs providing a clear formula under which drug prices would be regulated. There will be no interaction with officials in matters of revision of prices and there will be an automatic revision based on Consumer Price Index, the policy notes.
The policy further adds that prices of drugs will be frozen till June 2016 at levels of 2013 where after the Consumer Price Index shall be applied. The new policy aims on the one hand to ensure availability of quality drugs at affordable prices to the patients and on the other keeps the industry viable, ensure its growth and promote investment in the country, maintained in the draft policy.