Terming the increase in drug prices irrational, the federal government has decided to challenge the Sindh High Court's decision allowing pharmaceutical industry to jack up medicine prices. Six multinational pharmaceutical companies including Glaxo SmithKline (GSK), Sanofi-aventis, Abbott Laboratories, Novartis, Otsuka and Reckitt Benckiser increased medicine prices by 15 per cent without prior approval from the Drug Regulatory Authority of Pakistan (DRAP).
The medicines produced by the companies are used for the treatment of cardiac ailments, blood pressure, weakness, fever and painkillers. The Ministry of National Health Services Regulation and Co-ordination has received the court's judgement with respect to allowing the drug manufacturers to increase prices, said Sajid Shah, Spokesperson for the Ministry while talking to Business Recorder.
The increase in drug prices is irrational and against the drug policy, said Shah, adding that the Ministry would file a review petition in the Court. The new drug policy has frozen prices of drugs till June 2016 at levels of 31-10-2013 except those falling under hardship category and which would have become non-viable in the market, he added. Meanwhile, Advocate Ishtiaq Chaudhry has filed a petition in Lahore High Court against the drug price-hike, taking the stance that drug companies have jacked up prices of life-saving drugs by 20 to 70 per cent without taking prior approval from the authorities.
The petitioner has further said that the public would suffer in the wake of the recent increase in drug prices. The petitioner has prayed the court for declaring the price-hike null and void.
Nasir M. Qureshi, Chairman Pharmaceutical Committee of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) while justifying the increase said that drug prices have not been increased since 2000, while the cost of production has increased manifold.
He further stated that DRAP's jurisdiction is only to issue license, ensure quality and efficacy, and not to determine prices. Qureshi further said that the Ministry/DRAP lack capacity to take timely decisions which result in worsening the situation.
Pakistan Chemists & Druggists Association (PCDA) has stated that DRAP has failed in making viable pricing policy. The policy is unconstitutional, discriminatory, unworkable and above all, devastating to both the stakeholders and general public alike. DRAP's pricing policy has no realistic basis and fails to sustain a workable business structure for the stakeholders and especially pricing policy for imported drugs is flawed, the PSDA further maintained.
Nadeem Iqbal, Head of "The Network for Consumer Protection" told Business Recorder that there seems to be little reason to increase drug prices by such a high percentage at a time when global oil prices are at their lowest. It is now the duty of DRAP and government to ensure not only withdrawal of increase in prices but also availability of medicines in market.