Pharmaceutical industry: Medicine prices – a bitter pill to swallow
PPMA chief says prices lower than those in India and Bangladesh .
The government has not allowed an across-the-board price increase since 2001. STOCK IMAGE
KARACHI:
In another reminder as to how the country’s sector is facing immense issues, Pakistan Pharmaceutical Manufacturers Association (PPMA) Chairman Saeed Allahwala said that 61% of the top 28 selling brands are cheaper in Pakistan compared to India and Bangladesh.
Speaking at a press conference, the PPMA chief said that despite producing low-cost medicines in the country, the Pakistan government is forcing the pharmaceutical sector to further reduce prices.
“It’s a misconception in Pakistan that drug prices are expensive than regional countries. Like I said, 61% of the 28 top selling brands are cheaper here, while only 39% of the leading brands are slightly expensive than India,” he said.
The government has not allowed an across-the-board price increase since 2001. Thus, price constraints have not only eroded profitability of companies over the last decade but also discouraged investments in the sector, he added.
He stated that the there is a widespread misconception that the pharmaceutical industry in the country is making extraordinary profits, possibly at the cost of consumers. “Like all other industries, the pharmaceutical industry has invested here to make a profit but that which is justifiable,” he added.
The government is all set to announce the new drug policy but the industry says it is not convinced with some of its features.
Allahwala, however, said the industry believes the new policy does contain some important developments. “We support the government’s decision to link drug prices with Consumer Price Index (CPI) in the future. Through this mechanism the prices will increase or decrease automatically with change in CPI,” he said.
The government has denied companies an increase in prices on 318 molecules that form the components of hundreds of drugs and forcing them to reduce some prices by as much as 30%. On the other hand, companies say this is forcing them out of the business owing to the rising cost of production.
Allahwala said the government should focus on some of the major initiatives to develop the pharmaceutical sector. Pricing should be reformed and rationalised to support public health and industry performance, and incentives be offered to invest in FDA-quality plants to gain access to largest export markets, he added.
Referring to the Pakistan Business Development Plan and National Trade Corridor Sector Strategy report launched by the Planning Commission of Pakistan, he said pharmaceutical companies have seen declining profitability that is one of the causes why the country is not receiving investment in FDA certified plants.
There are 90 FDA certified plants in India while Italy has 40, China 22, Taiwan 10, Bangladesh four, and Jordan has three such plants but, unfortunately, Pakistan has not a single plant which is certified by FDA.
He also said that due to pricing issues, availability of essential drugs in Pakistan is becoming a serious concern.
Published in The Express Tribune, January 22nd, 2015.
In another reminder as to how the country’s sector is facing immense issues, Pakistan Pharmaceutical Manufacturers Association (PPMA) Chairman Saeed Allahwala said that 61% of the top 28 selling brands are cheaper in Pakistan compared to India and Bangladesh.
Speaking at a press conference, the PPMA chief said that despite producing low-cost medicines in the country, the Pakistan government is forcing the pharmaceutical sector to further reduce prices.
“It’s a misconception in Pakistan that drug prices are expensive than regional countries. Like I said, 61% of the 28 top selling brands are cheaper here, while only 39% of the leading brands are slightly expensive than India,” he said.
The government has not allowed an across-the-board price increase since 2001. Thus, price constraints have not only eroded profitability of companies over the last decade but also discouraged investments in the sector, he added.
He stated that the there is a widespread misconception that the pharmaceutical industry in the country is making extraordinary profits, possibly at the cost of consumers. “Like all other industries, the pharmaceutical industry has invested here to make a profit but that which is justifiable,” he added.
The government is all set to announce the new drug policy but the industry says it is not convinced with some of its features.
Allahwala, however, said the industry believes the new policy does contain some important developments. “We support the government’s decision to link drug prices with Consumer Price Index (CPI) in the future. Through this mechanism the prices will increase or decrease automatically with change in CPI,” he said.
The government has denied companies an increase in prices on 318 molecules that form the components of hundreds of drugs and forcing them to reduce some prices by as much as 30%. On the other hand, companies say this is forcing them out of the business owing to the rising cost of production.
Allahwala said the government should focus on some of the major initiatives to develop the pharmaceutical sector. Pricing should be reformed and rationalised to support public health and industry performance, and incentives be offered to invest in FDA-quality plants to gain access to largest export markets, he added.
Referring to the Pakistan Business Development Plan and National Trade Corridor Sector Strategy report launched by the Planning Commission of Pakistan, he said pharmaceutical companies have seen declining profitability that is one of the causes why the country is not receiving investment in FDA certified plants.
There are 90 FDA certified plants in India while Italy has 40, China 22, Taiwan 10, Bangladesh four, and Jordan has three such plants but, unfortunately, Pakistan has not a single plant which is certified by FDA.
He also said that due to pricing issues, availability of essential drugs in Pakistan is becoming a serious concern.
Published in The Express Tribune, January 22nd, 2015.