DRAP criticised for unilaterally adopting drug policy

Many pharmaceutical companies have conveyed to the government that they are contemplating shutting down their operations to protest against the DRAP's (Drugs Regulatory Authority of Pakistan) average pricing formula, it is learnt. According to sources, stakeholders of the industry during their meeting with officials in Islamabad had expressed their disappointment over not including any of their recommendations in the proposed drug policy.
"The Drug Regulatory Authority (DRA) of the country kept the pharmaceutical industry in dark while devising a new drug policy, yet it claims transparency and proper consultation with the industry," the sources claimed, saying: "We don't agree with many of the provisions of the policy as they would do more damage to the ailing industry, instead of providing any relief to the industry."
The sources claimed that the authority did not consult the stakeholders and it was because of this reason that the industry had to move to the court against the authority. "Even then the authority completely disregarded the stakeholders and the court and sent the draft of the policy to the prime minister for approval," they added. They said the officials of the authority did a patchwork and incorporated something from Indian drug policy while framing this policy. "They should have adopted the whole Indian policy, but they picked up only those clauses from India drug policy which suited them.
"The industry has no issue with the controlled drugs, but it demands relaxation in uncontrolled drugs. DRA has designed the policy in a way that would keep dragging low-priced drugs into hardship category," they opined. They said that the policy devised by the DRA was aimed at denying due profits to the pharmaceutical firms.
In fact, the industry had long been asking for a rational increase in drug prices, but the DRA had suggested a freeze on drug prices until June 2016 in the policy and thereafter a cap of six per cent and four pc on non-scheduled and scheduled drugs which meant that if a company has three generics it will have to reduce its prices by 30pc.
"Fixing the price of every drug, separately, is against the fundamentals of the market," they sources said, adding that ultimate sufferers in that case would be the industry as its profits will dwindle considerably. At the outset, the sources claimed that 1300 to 1400 applications have been pending with the DRA for the revision of price for the last two years.