Pharma firms accept cap on drug price increases till end Sept

ISLAMABAD: The domestic pharmaceutical firms have agreed to the government’s proposal to cap drug prices at the current levels during the first quarter of the current fiscal year, health ministry said on Saturday.

“The government proactively took measures by keeping the prices static by interacting with pharma industry in order to alleviate the suffering of people during this pandemic,” said a statement issued by the ministry of National Health Services Regulations & Coordination.

“Accordingly, pharmaceutical companies have decided not to increase drug prices in the first quarter of this financial year in support of the government's initiative to provide relief to the people due to the COVID pandemic.”

The pharmaceutical companies under Drug Pricing Policy 2018 can increase prices of essential drugs by 7 percent and non-essential drugs by 10 percent in accordance with annual consumer price index (CPI).

The statement said all medicines will remain available at old prices in the first quarter of this financial year.

“The government appreciates and commends the decision of the pharmaceutical companies and to stand with the government to provide relief to the people of Pakistan in this difficult time.”

The government had revised the Drug Pricing Policy to bring it in lines with Drug Act 1976 and to remove legal lacunae. In doing so, the government has created a step-in clause in Drug Pricing Policy whereby the government can exclude any category of drugs from annual increase of price.

The Drug Regulatory Authority of Pakistan (DRAP) in last July approved a 7 percent increase in the prices of essential drugs/biologicals and a 10 percent increase in other medicines.

The DRAP allowed manufacturers and importers to increase their existing maximum retail prices (MRP) of

essential drugs/biologicals (excluding lower-priced) equal to 70 percent increase in CPI and MRPs of all other drugs/biologicals and lower-priced drugs up to 100 increase in CPI.

The calculations of the revised MRP of the medicines will have to be submitted by the concerned manufacturer or importer, signed and stamped by the managing director, CEO or any other authorised person.

The government had allowed a 5.14 percent increase in prices of essential medicines and biologicals whereas it had allowed a 7.3410 percent increase in prices of other medicines.