Pharmaceutical industry warns 40 percent price hike on delayed pricing policy

KARACHI: Pharmaceutical industry on Saturday warned that it would raise prices of medicines up to 40 percent by itself if the government drags feet over new drugs pricing structure.

Zahid Saeed, central chairman of Pakistan Pharmaceutical Manufacturers’ Association (PPMA), said it will be compelled to increase prices of medicines manufactured in the country by 40 percent if the present government takes no step to provide much-needed relief to the local drugs’ producers in view of massive rupee devaluation and pressing fiscal factors.

“Manufacturing cost of medicines in the country has been increased up to 60 percent given the record devaluation of rupee and increase in duties and taxes on the industry,” Saeed said, addressing a news conference.

PPMA chairman said the federal government has been reluctant to notify new prices of a number of medicines despite over a year has passed since the Drug Pricing Committee (DPC) forwarded its recommendations for the pricing structure.

“It is a high time for the government to notify new prices of medicines as per the recommendations of the DPC as any further delay to this effect would compel the pharma industry to take a unilateral decision.”

Saeed said the industry pinned hope on the new government, but it also couldn’t take any action even after three months into power.

“We have a very fewer choices before us now as already up to 250 medicines have virtually vanished from the market of the country as their manufacturers did find it simply unfeasible to keep producing them given the irrational pricing of the government for these drugs,” he added.

PPMA chairman said the price increase decision would only be taken to keep the industry afloat “only for the sake of patients”.

“We know very much what could be the serious repercussions of our unilateral decision but this (decision) will be like the last resort for us to keep our businesses viable and functioning as otherwise ailing citizenry of this country would be the ultimate sufferers,” he added.

Saeed further demanded of the government to factor in rupee devaluation for a new drug pricing mechanism.

Kaiser Waheed, ex-chairman of PPMA said the government has no regard at all to maintain viability of medicines manufacturers.

“The government even now insists on further slashing the prices of locally produced drugs,” Waheed added. “The medicines’ prices in Pakistan are one of the lowest in the region and there is no valid cause to further bring them down.”

The industry official said the government should allow a rational increase in prices of drugs, keeping in view the alarming inflationary trends.

“If that doesn’t happen the government is feared to become the prime sufferer as the resultant shortage of medicines will foremost hit the government-run hospitals and patients there,” he said.

Waheed said another option for the pharmaceutical industry is to compromise on the quality of medicines, “but that would not be in the interest of any of the concerned stakeholders”.