Drug authority questions pharmaceutical companies on drug price increase
The National Medicines Regulatory Authority (NMRA) has issued show cause letters to the Sri Lanka Chambers of Pharmaceutical Industry (SLCPI) and seven leading pharmaceutical companies for the unauthorised increase in the price of medicinal drugs in the market.
The letters dated May 29, 2020 stated that the companies have arbitrarily increased the prices of drugs in contravention of conditions laid down by the NMRA when registering drugs.
Chairman Prof Asita de Silva said that NMRA has taken serious note of the increase in prices following a complaint made by the Patients’ Rights Movement.
He said market surveillance of around 20 popular brand names showed evidence that the prices of several drugs had increased in the last two months during the Covid-19 lockdown period. The increases ranged from Rs 68 on Betadine cream to Rs 1.46 on Zycel 100mg.
Other price hikes included Rs 22 on Betadine gargle, Rs 5.50 on Voltaren 75mg tablets, Rs 35 on Vermox 500mg and Rs 4.50 on Xon-Ce Vitamin C.
‘This is unlawful and the companies have acted in violation of NMRA Act No.5 of 2015,’ he said.
Meanwhile, it is learnt that the SLCPI is lobbying for a price increase on 60 essential drugs and medical devices that have been price marked by the NMRA. The SLCPI has requested the NMRA to allow importing companies to increase prices of essential drugs, citing the depreciating value of the rupee against the dollar. The companies conceded that to continue importing without a price revision will be untenable for the industry.
Following this, an increase of 9% on retail prices was recommended by the NMRA pricing committee and forwarded to the Minister of Health for approval.
SLCPI President Kasturi Wilson said that there is no clear-cut guidelines from NMRA or provisions in the Act regarding the increasing of prices that are not controlled by the NMRA. "The NMRA has to give us a mechanism. This is not arbitrary, but only an adjustment for the exchange rate."
Importing companies went ahead with the price increase of drugs that are outside the parametres of essential drugs. In response, the NMRA withdrew the recommendation to increase prices last week and issued show cause letters to A Baurs & Co Ltd, Emerchemie NB, Euro Asian Pharma ( Pvt) ltd, Hemas Pharmaceuticals Pvt Ltd, Pettah Pharmacy (Pvt) Ltd, Robert Hall & CO Pvt Ltd And Sunshine Healthcare Lanka Ltd.
The NMRA brought 60 pharmaceuticals and medical devices under its control in 2015 which constitutes 65% of the market share of drugs. The price regulation, it argues, has increased the sales volume of the price-regulated medicines during the last five years, bringing in a Rs 7 billion revenue for the industry.