Drug prices raised for third time in a year

LAHORE: The Drug Regulatory Authority of Pakistan (DRAP), Ministry of National Health Services, Regulations and Coordination, Pakistan, has increased the prices of medicines for third time this year.

The DRAP, in its notification S.R.O. 628 (I)/2016 dated July 22, 2016, ordered that, “In exercise of the powers conferred by clause (a) of section 7 of the Drug Regulatory Authority of Pakistan Act, 2012 (XXI of 2012) read with section 12 of the Drugs Act, 1976 (XXXI of 1976), the Drug Regulatory Authority of Pakistan (DRAP) with the approval of the federal government is pleased to fix minimum retail prices subject to the conditions mentioned in this notification.

An increase of 1.43% has been made for scheduled drugs (50% of Consumer Price Index), 2.002% for non-scheduled drugs (70% of CPI) and 2.86% (equal to CPI) for lower priced drugs over and above the maximum retail prices as fixed by the federal government.

This notification shall not be applicable on all sub-judice cases related to pricing issues including notification No11-2/2013-DDC(P) dated 29th November 2013 till final adjudication of such cases.

The maximum retail prices (MRPs) shall be subject to the following conditions i.e. the price increase shall not be applicable to the batches manufactured before affecting the increase of authorized rates by the federal government. No recall of drugs of already marketed batches shall be allowed; the revised MRPs shall be printed on the label in the manner prescribed by the Drugs (Labeling and Packing) Rules, 1986; no manufacturer, importer, retailer, hospital, clinic, wholeseller or distributor shall be allowed to affix stickers, overlapping or masking of prices. However, in order to save the packing materials, manufacturers can reprint maximum retail prices on the same through laser inkjet after masking the previous MRPs for packing of new stocks; the calculations of revised MRPs, duly signed and stamped by the Managing Director or Managing Partner or CEO or any authorized person on their behalf, shall be intimated to the Authority (Division of Costing and Pricing) at least 15 days prior to affecting the increase; the revised price list shall be submitted in hard copy and uploaded on the DRAP website or as prescribed by the Authority from time to time; and the evidence of authenticity of the existing approved prices shall be submitted with declaration that the calculation has been made in accordance with the provisions of the Drug Pricing Policy 2015 and the approved increased rate by the Federal Government.

The DRAP has informed that, in the light of Drug Pricing Policy 2015, the annual increase in prices of medicines has been linked with Consumer Price Index (CPI) under the declaration of Pakistan Bureau of Statistics. The CPI ratio for fiscal year 2015-16 has been fixed at 2.86%, which has been approved by the Cabinet’s Economic Coordination Committee (ECC).

The scheduled drugs are the ones registered in the Schedule of Drug Pricing Policy 2015, and non-scheduled drugs are other than registered in this Schedule. The lower price drugs are those medicines, whose MRPs are less than recently approved rates i.e. Rs 3 per tablet/capsule/respule/  caplet/patch; Rs 3 per 5ml of syrup/suspension/elixir; Rs per sachet; Rs 15/ injection; Rs 3 per 1 gm of cream/ointment/gel (non-sterile) subject to maximum pack size of 20 gm; Rs 4 per 1 gm of cream/ointment/gel (sterile) subject to maximum pack size of 20 gm; and Rs 4 per ml of eye/ear/nasa drops/nasal spray/inhalation solution (sterile) subject to maximum pack size of 10 ml.

The Pakistan Pharmacists’ Association’s representative, in a statement, said that the government has allowed increase in prices of at least 80,000 medicines in the country in one go and it would affect the entire population of this country. “This is the third time increase in drug prices during the last seven months,” said Noor Muhammad Mehr and added that the poor patients were dying due to their inability to afford the medicines while the government has allowed increase in prices of medicines thrice in a year.