Pharma chamber welcomes move to increase drug prices
The recent move by the Ministry of Health to increase drug prices by 5 per cent was this week welcomed by the Sri Lanka Chamber of the Pharmaceutical Industry (SLCPI).
Implemented in October 2016 on 48 molecules, the price ceiling impacted the pharmaceutical industry, particularly as importers had to reimburse retailers and distributors for the stocks held at the time of the pricing ceiling and in support of effective implementation.
Since March 2014, when all pharmaceuticals products were gazetted as essential items, prices of most drugs have remained unchanged despite the devaluation of the rupee from Rs. 130 to Rs. 155 per 1 US$.
Most pharma companies did not adjust prices expecting a viable longterm pricing mechanism as envisaged in the National Medicines Regulatory Authority (NMRA) Act, thereby sustaining losses year on year, the SLCPI said in a media release on Tuesday.
“The government’s increase of prices of 48 drugs was well considered and appropriate, given global market conditions. Globally, the disease burden on countries and economies has been shifting to non- communicable diseases (NCDs) like diabetes, cardio-vascular diseases, cancer and lung- related diseases. Addressing the NCD burden will call for new and innovative medicines, including biologics, and new forms of treatment and therapies,” said Shyam Sathasivam, President of SLCPI.
“Almost 90 per cent of pharmaceutical products are imported and the exchange rate impacts significantly on the pricing. The exchange devaluation of the rupee has greatly increased the cost of pharmaceutical products causing a risk to its continuity,” he added.
SLCPI asserts that access to healthcare includes access to medicines. “It is important that healthcare be affordable; much of healthcare is already very affordable in Sri Lanka. Currently, around 80 per cent of inpatient care and 50 per cent of outpatient care is provided by the public system, while the private sector accounts for the remaining. Capping prices on much-needed medicines for cancer and cardio-vascular diseases, for example, in the name of making them affordable could result in their not being available for the people that need them. Many of those medicines have to be imported, since we do not make them. In raising prices even marginally, the government has balanced affordability with availability so that the patients receive the benefits of both,” the release stated.
Since March 2014, when all pharmaceuticals products were gazetted as essential items, prices of most drugs have remained unchanged despite the devaluation of the rupee from Rs. 130 to Rs. 155 per 1 US$.