PTI govt did not approve hike in drug prices: ministry

Drug Pricing Policy 2018 grants medicine companies right to increase prices annually by up to 10 %

ISLAMABAD:

The Ministry of National Health Services on Sunday clarified that the government had not approved any increase in the prices of essential drugs as reported by some sections of the media.

According to the ministry spokesperson, Drug Pricing Policy 2018 granted pharmaceutical manufacturers the right to increase the prices of drugs annually by 7% and 10 % without the government’s right to intervene.

The spokesperson noted that the Drug Pricing Policy 2018 had been revised by the federal government to bring it in line with the Drugs Act 1976 and to remove the legal lacunae.

In doing so, the government created a step-in clause in the drug pricing policy whereby it could exclude any category of drugs from the annual increase in the prices.

The spokesperson observed that the Drug Regulatory Authority of Pakistan (Drap) had recently notified the amendments made by the government to the Drug Pricing Policy 2018.

This was done in the backdrop of assurance given by pharmaceutical manufacturers that they would not apply for annual raise in the prices of drugs at least until September 2020.

The pharmaceutical industry backtracked from its stance and around 100 companies applied for annual increase in the prices of drugs.

“The government has the right to step in to freeze any or all drug prices to safeguard public interest in view of the Covid-19 situation,” the spokesman said.

On Friday, it was reported that the Drap had issued a notification according to which the pharmaceutical companies had been allowed to increase the prices of lifesaving drugs by up to 7% and other drugs by up to 10% on the recommendation and approval of the government and its policy board.

According to the notification, the pharmaceutical companies and drug importers would be bound to submit the evidence of a raise in the maximum retail price (MRP) of a medicine along with the signatures of the company’s CEO to the Drap.

The Drap would not accept revised prices of a pharmaceutical company or importer if they failed to submit this evidence.

The drug regulatory body would approve the new prices within 30 days after verifying the documents.

However, the new prices will be considered effective if Drap failed to approve the prices in 30 days.

The notification said that no pharmaceutical firm, importer, hospital or wholesaler would be allowed to put the sticker of new prices on the medicine bottles or packs.

The revised MRPs will have to be printed on the packing according to the Drug Labeling and Printing Rules.

The new prices will not apply to the batches of medicines made prior to the notification.

The notification said the Ministry of Health will review the drug prices every year according to Consumer Price Index (CPI).

The apex court on June 29 had ordered the federal government to decide new drug prices within four weeks as it expressed dissatisfaction over the operations of Drap, which, it said, worked under the pharmaceuticals.

With additional input from APP