DRAP refutes allegations of raising drug prices

Pharmacists claim drug body chief extended illegal benefit to firms

ISLAMABAD: The top drug regulator has claimed that some members of a group of young pharmacists and drug lawyers, who have been maligning the regulator before the media and courts, are allegedly involved in illegal manufacturing of banned sex drugs and unregistered drugs.

Addressing a news conference in Islamabad on Thursday, the Drug Regulatory Authority of Pakistan (Drap) CEO Aslam Afghani stated that in February 2015, the Federal Investigation Agency (FIA) had raided a factory which had been manufacturing illegal drugs and was allegedly owned by a young pharmacist Dr Usman.

Afghani claimed that following the raid, a smear campaign was launched against the Drap and the health ministry.

The news conference had been held hours after a joint press briefing by the Pakistan Young Pharmacist Association (PYPA) and Pakistan Drug Lawyers Forum (PDLF).

The PYPA and PDLF had alleged that Drap was approving the import of inferior medicines from India and other countries while the local pharmaceutical industry had been destroyed.

They went on to allege that Afghani had abused his official position and managed to extend benefits to two herbal companies in which he had a stake including the Thai Otsuka Pharmaceuticals Co Ltd, Thailand and PT. Otsuka, Indonesia.

PYPA General Secretary Dr Hina Shaukat said that value of Otsuka Pharma’s shares before Afghani’s appointment as Drap CEO was Rs46 per share. But after the company was allegedly given ‘benefits’, its share value jumped to Rs228 per share means an illegal benefit of billions.

Dr Noor Mahar, president of the PDLF, stated that while the government was trying to provide relief to the people, DRAP had prepared a ‘price bomb’ to loot the poor and would see a cumulative hike of 15 per cent in the prices of medicine when this bomb explodes in July.

“This would be the eighth price increase since 2013,” Dr Mahar claimed.

Later, the health ministry and the Drap denied all allegations levelled by the PDLF and PYPA were factually incorrect, baseless, totally misleading and propounded by some vested interests.

In his rebuttal briefing, the Drap chief said that Usman, the owner of Everest Pharma (a member of Pakistan Drug Lawyers Forum) had been involved in the manufacture and sale of unregistered drugs and medicines such as the tablets Silk, Link, Decore, Ispar, Sancos, MTD, M-Plus and Penball.

Afghani added that the Drap had taken stern action against him and other such culprits which are why he was maligning officers of Drap.  Moreover, he said that the culprit was trying to seek shelter from the court to avoid these stern actions.

The Drap chief added that some elements are involved in a nation-wide campaign in the media, court and high public offices in which they were assassinating the character of Drap and health ministry officials for their illegal gains.

“While some of them are involved in the illegal manufacture of banned sex drugs and unregistered drugs apart from violating licensing rules, whenever action is initiated by Drap against these elements, they attempt to pressurise Drap and health ministry officials for their vested interests,” the Drap chief said.

He added that they have neither recommended nor have any ties to the increase any price increase the promotional budget of pharmaceutical companies noting that according to the Drugs Act 1976 and the DRAP Act 2012, companies can increase budgets by five to ten per cent.

Moreover, he clarified Drap’s proposals in the budget, explaining that an amendment to the Income Tax Ordinance 2001 had been presented by the revenue and finance division which is currently being considered by the parliament.

“This is not related to Drugs Act 1976 or DRAP Act, 2012. These accusations are, therefore, clearly mala fide and baseless and against the facts and close to attempts against the laws of the land,” he said.

Afghani added that the Drug Pricing Policy-2015, which had been approved by the Economic Coordination Committee (ECC) of the Cabinet, provides a transparent mechanism for fixing, and re-fixing of drug prices.

Moreover, he said that the same policy also provides for an annual price increase in the prices of drugs and for transparency, fair practices and uniform application. This increase of price is linked with Consumer Price Index (CPI) which is announced by the Pakistan Bureau of Statistics.

“Federal government, the ministry of health and Drap have not increased the prices of drugs for the companies, contesting in the court,” the Drap chief said.

He further said that during the past year, 30 of the 700 pharmaceutical companies have increased the prices of 380 drugs out of the 70,000 registered drugs without the approval of the federal government and Drap after managing to obtain restraining orders. The Drap chief said that these orders had been secured by the companies and associations by allegedly misleading courts and that these cases were being contested with the assistance of Attorney General of Pakistan.

Published in The Express Tribune, June 2^nd, 2017.