THE cost of prescription drugs keeps increasing and there is no end in sight. I have two suggestions that can help the government regulate the prices and make drugs affordable to all and sundry. The first method is socialist in nature, and the second capitalist as it relies on market forces and supply-demand interaction.

Let’s talk about the socialist method first. The government can draw a list of the 100 most widely used prescription drugs. It should negotiate the best possible prices from pharmaceutical companies for bulk buying.

These drugs should then be sold in utility stores to those who can’t afford high prices. The government should also introduce checks to deal with hoarders who abuse the system for profit.

The second method involves increasing the competition among the cheaper (off patent) generic drugs. The government should grant licences to new manufacturers in the lower-cost as well as life-saving drug categories once patent and exclusivity periods for these drugs lapses.

The rationale behind this approach is simple. After manufacturers secure an approval to produce a drug from the government, they get a patent protection which allows them to enjoy a certain period of monopoly to manufacture that drug, and they use this monopoly to demand higher prices. Generic medicine manufacturers can enter the market once that exclusivity period is over, and offer low-cost substitutes. This will increase competition and help drive down medicine prices.

Manzar Mashhood Khilji

Karachi

Published in Dawn, January 25th, 2020