ISLAMABAD: As the ‘Drug Pricing Policy 2018’ has empowered pharmaceutical companies to increase prices on their own, at least 10,000 medicines will become dearer by up to four per cent next month.

The pharmaceutical firms have already started preparations and reduced supplies to the market to ensure that the existing stock, which has less maximum retail price (MRP), would be consumed and the sale of the new stock started at the earliest.

After a gap of 15 years, a drug policy was formulated and sanctioned by the Economic Coordination Committee (ECC) of the cabinet in 2015. According to the policy, the Consumer Price Index (CPI) was to be considered for increasing the prices. As the government had announced 4.16pc CPI for the year 2016-17, the prices would be increased by 50pc of the CPI for scheduled/essential drugs (over 300 molecules also called life-saving drugs) and the non-scheduled drugs by 70pc of the CPI. However, the threshold drugs (having price less than Rs3 per tablet) were increased by 100pc of the CPI.

New drug pricing policy empowers companies to increase prices on their own

An official of the Ministry of National Health Services said though the CPI was announced in the first week of July last year, the price increase could not be implemented for almost eight months as the policy stated that the companies had to seek approval from the government.

“But the firms were of the view that as it was already mentioned in the policy that the prices would be increased according to the CPI, there was no need to seek approval from the government.”

However, the companies were of the view that strict action should be taken against those who increased prices more than the CPI percentage, he said.

“Moreover, companies were demanding that rather than dividing medicines into three groups, there should be only two groups. So in the new drug pricing policy, it was decided that there would be only two groups of medicines: essential medicines and others. According to the new policy, prices of essential medicines will be increased by 70pc of the CPI and that of the other medicines by 100pc of the CPI,” he said.

“As according to the new policy, prices will be increased automatically, companies will increase the prices and then inform Drap,” he said.

According to the draft of the new pricing policy, drugs for human use shall be divided into two categories for pricing. In the first category will be drugs and biologicals on the National Essential Medicines List and in the second will be all other drugs.

The list of drugs and biologicals may be revised after three years or earlier as deemed appropriate by the authority in accordance with World Health Organisation list of essential medicines.

The MRP of a generic shall not, at any time, exceed the MPR of the respective originator brand except those cases where the originator brand has itself requested for deregistration or it is confirmed from the manufacturer or importer of the originator brand that they can no longer ensure the availability of the same.

No person, including a retailer, hospital, clinic, wholesaler or distributor, shall sell any drug to any consumer at a price exceeding the MRP printed on the respective pack. In case of sale of a drug in loose quantity, MRP shall not exceed the pro-rata MRP printed on the respective pack.

Moreover, no person, including a manufacturer, importer, retailer, hospital, clinic, wholesaler or distributor, shall be allowed to affix stickers, overlapping or masking of prices. However, in case of voluntary reduction in MRP, masking of previous MRP and reprinting of reduced MRP through laser inkjet will be permissible, if so requested.

An official of Drap said there were over 70,000 registered medicines but only 10,000 were available in the market. So practically, the prices of 10,000 medicines will go up.

“The CPI of last 11 months of the current financial year was 3.8pc and it will be around or little over 4pc at the end of the current financial year,” he said.

Published in Dawn, June 25th, 2018