DRAP warns of licence cancellation on drug price hike

KARACHI: The Drug Regulatory Authority of Pakistan (DRAP) has warned the pharmaceutical companies that increased the drug prices unilaterally, of cancellation of their licenses, monetary penalty and several other fines for illegally increasing the prices by 15 percent.

Talking to The News on phone from Islamabad on Thursday, DRAP Chief Executive Officer Dr Muhammad Aslam said various actions were under discussion against such factories. “We can seize all the products, whose prices have been increased,” he said.

According to reports, six multinational companies had increased the drug prices without any approval of the authority or ministry.

The multinational pharmaceuticals (Pharma Bureau) have taken stay order from the Sindh High Court against any action of the authority. “We have applied in the court to vacate the stay order,” Dr Aslam said. “We have mentioned in the court that with such stay order, poor people of the country will be forced to pay higher prices.”

On the other hand, one spokesman of Pharma Bureau said prices were increased as per government policy only for those medicines whose cost of production had increased than the selling price. Industry was near to halting manufacturing of such medicines.

He said that consumers were paying higher prices of alternative imported medicines. The industry was struggling for an increase in the prices for the last 14 years, he added.

For the first time in pharma history, he said, the government had given an assurance policy of reasonable pricing for such medicines which were required on a larger scale.

Pharma Bureau spokesman said cough syrups cheaper than mineral water and pain killers than paan and chhalia. Thus, it was difficult for the industry to go with the existing prices.

He said prices were increased not only by the multinationals, but also by the local manufacturers.

Muhammad Asim Jamil, Secretary General Pakistan Chemists and Druggists Association, confirmed that 15 percent prices were increased by both the multinationals and locals one and a half year ago, as DRAP has completely failed in the implementation of the drug pricing policy. “Not a single meeting has been held on drug policy since its announcement one year ago,” he said.

He said no prices were increased since 2001, and though DRAP approved an increase of 15 percent a year and a half ago, the decision was taken back under political pressure by the current government. Thus, the companies increased prices and went to courts to get stay order against any government action.

Jamil said all companies provided medicines to the government hospitals at the cost prices, but people did not get benefit from those because of the rampant corruption in public hospitals.

He said DRAP was formed in 2012 and around 200-300 drug registration applications were pending at that time, however now the number has increased and currently 14,000 applications are pending for registration.

Pakistan Pharmaceutical Manufacturers Association (PPMA) former chairman and Brooks Pharma Chairman Senator Abdul Haseeb Khan said any increase in the prices before July 1, 2016 is illegal. “They can’t do it. It is illegal,” he said.

He said both Pharma Bureau (multinationals) and PPAM (local manufacturers) were bound with the DRAP under an agreement for not making any change in the prices till July 1, and such decision was also notified later.