ISLAMABAD: Pakistani governments and pharmaceutical companies have been at odds over pricing of the medicines produced in the country for years, and the sick appear to be suffering the most.

It is so because several multinational companies have quit the country, creating a problem of availability of the medicines they were producing in Pakistan on licence.

While the industry insists economics demand the prices should be raised, the PML-N government plans to reduce them by 30 per cent. The public finds itself caught between the clashing views of the two sides and fears it would only exacerbate their problems.

Also read: Pharmas for panel to review drug pricing policy

National Health Services (NHS) Minister Saira Afzal Tarar confirmed to Dawn that prices of medicines will be reduced by 30 per cent over the next three years. “However, it has been decided to give inflation rate to the companies,” she added.

“We have talked to the pharma companies and allowed them to charge any price for the medicine they export from Pakistan. But inside Pakistan our controlled rates will apply,” she said.

Ms Tarar reminded that all over the world multinational companies come in and go out, including India.

“I have been concentrating on the quality of the medicine and I have instructed Chief Executive Officer, Drug Regulatory Authority of Pakistan, Dr Muhammad Aslam to resolve the issue of quality of drugs. Moreover World Health Organisation consultant Sultan Ghani is also cooperating to improve the quality of medicine,” she said.

Indeed, the Ministry of National Health Services (NHS) had notified a 15 per cent increase in the prices of drugs on November 28, 2013 – only to be withdrawn the very next day on the orders of Prime Minister Nawaz Sharif.

Such vicissitudes on the part of governments provided the multinational pharmaceutical companies with the excuse to pack up and leave Pakistan. During the past decade, 11 of the 35 international pharma franchises have quit the country.

Merck Sharp and Dohme (Pakistan) Ltd, a research-based American company operating since 1960, sold its business along with its manufacturing unit and products registered in Pakistan. Another American company, Bristol Myers Squibb, sold its business to Glaxo Smith Kline Pakistan, along with its locally registered products.

ICI, a UK-based company, disinvested in Pakistan, with its name and production licences sold to a local company, as did the Roche Pakistan.

Recently, Johnson and Johnson, which came to Pakistan in 1966 at the invitation of President Ayub Khan for the strategic importance of its line of production, sold its manufacturing unit of Pharmaceutical and Surgical Sutures to a local company. An official of Ministry of NHS, not authorised to speak on record, noted the negative fallout of their departure.

“New products developed and introduced by them after their disinvestment stopped reaching Pakistan and the quality of their licenced products became questionable in the hands of the new operators,” the official said.

A war can put Pakistan in a difficult situation as the Surgical Sutures, made by Johnson and Johnson from local material, would not be available for wounded soldiers, he said.

“Already, products like Halothane Inhalation, Thyroxin, Neomercazole, Catgut Surgical Sutures, Silk Surgical Sutures, Digoxin etc are in short supply,” he said.

And beyond doubt the quality of products of multinational companies is much better than that of local manufacturers.

While talking to Dawn, Vice Chancellor, Pakistan Institute of Medical Sciences (Pims), Dr Javed Akram observed that some other multinational companies are also planning to leave Pakistan.

“Our priority should be to ensure availability of new medicines in the country. Almost every five years, research either improves the quality of medicine or introduces new ones,” he said.

“Only multinationals can bring more potent medicines to market. Government should negotiate with them, because if they leave people of Pakistan will suffer,” he added.

In his view, the government should regulate only life saving drugs and deregulate others. That would bring more multinationals to the country and their competition would bring the prices of medicine down.

Shahab Rizvi, Chairman of Pharma Bureau, an association of multinational companies, told Dawn that the government in fact would be reducing the medicine prices by 45 per cent.

“It has decided to withdraw the interim relief of 15 per cent given in 2013, and decrease the prices of 348 molecules out of 1,300 by 30 per cent in the next three years,” he said.

“These measures would mainly impact the multinationals because most of the 348 molecules are imported, leaving them no choice but to quit the country,” he said.

Eight years back, he recalled, nine companies were making medicines for tuberculosis. Today only three are manufacturing them.

“Rich people can afford treatment abroad, but the poor will really suffer,” he said.

Published in Dawn February 16th , 2015

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