Increases in drug prices to be capped at 75%

Special Assistant to the Prime Minister on National Health Services (NHS) Dr Zafar Mirza has said the recent up to 400% hike in prices of medicines would be capped at 75%.

“Though prices of medicines were increased by up to 400% the day I took charge [April 23], Prime Minister Imran Khan directed for a reduction in the prices within 72 hours. I started deliberations, and finally it has

been agreed that the maximum increase in the prices would be 75%,” he told a press conference.

Mirza said that prices of 889 medicines were considered, out of which prices of 464 were increased and that of 395 brought down, while the others remained unchanged.

“The 464 medicines, whose prices were increased, were frequently used, so it drew criticism. Moreover, prices of all medicines went up by another 15% due to devaluation of the rupee.”

He said that as prices of 464 medicines were increased under “hardship cases” on the orders of the Supreme Court of Pakistan, companies were contacted for negotiations.

If a company claims that manufacturing of a drug is not viable due to the increase in the cost of producing it, the Drug Regulatory Authority of Pakistan (DRAP) can increase its price to ensure availability of the drug.

Such cases are called “hardship cases”.

Mirza said that prices of medicines which had been increased by between 50% and 75% would also be reduced by 9%.

He said that the prices of medicines would be made affordable for the common people.

“Moreover, the reduction in prices of 395 drugs, notified vide (in reference to) SRO dated 3112-2018 will be implemented in letter and spirit, since the Sindh High Court has disposed of petitions filed by pharmaceutical companies,” he said.

Mirza gave an example of ferrous sulphate tablets, which was available for Rs64.28 for 1,000 tablets and whose price went up to Rs218 (a 239% increase).

Now it will be reduced to Rs112.49 for 1,000 tablets, he added.

“Another example is the price of Solu-Cortef 100mg injection [steroids] which was available at Rs86. After the 178% increase, its price reached Rs238.71. By limiting the increase to 75%, this drug will now be available at Rs150.50.”

Because of these steps, patients will directly get a benefit of about Rs10bn in terms of savings on the purchase of drugs, Mirza said.

He said that companies which had not reduced prices of the 395 drugs after a notification of their prices would be prosecuted in the drug courts.

Mirza said that a mechanism is being evolved to channelise the recovered amount to the Pakistan Baitul Maal to purchase medicines for patients suffering from terminal diseases.

“To provide a long-term solution, we are introducing a national medicine policy that will ensure access to essential medicines by the citizens at affordable prices,” he said.

Mirza said that major reforms are being introduced in the working of his ministry, and that he would share his 100-day progress with the nation.

An official of the NHS ministry said that out of the 464 medicines, the prices of 360 had been increased by up to 50%, the prices of 52 by between 50% and 77%, and prices of 52 medicines were increased more than 75%.

“The ministry should hold an audit to ascertain the prices of raw materials at the international market. Some companies are involved in the flight of capital through over-invoicing. As a result, the country is losing foreign exchange,” he alleged.