E-drug: Drug Price Increase in Pakistan
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We would like to learn the experiences of other countries in the light of
this news clipping which appeared in the Daily Dawn dated 25th Jan 2002.
Azhar Hussain
Research & Advocacy Officer
TheNetwork for Consumer Protection
Pakistan
<azhar@thenetwork.org.pk>
NGO seeks withdrawal of increase in drug prices
By Our Staff Reporter
ISLAMABAD, Jan 25: The Network, a non-governmental organization, in a letter
to the chief executive, has demanded to withdraw the recent increase in
drugs prices.
In some instances, the prices have been increased by 40 per cent, Dr Zafar
Mirza, the executive coordinator of The Network, told reporters here on
Friday.
The NGO also submitted the copies of the letter to the cabinet members with
a demand to look into the decision.
The letter explains the companies has increased the prices after receiving a
notification from the health ministry which allowed them to increase the
prices up to three to four per cent to be calculated on "leader" prices.
Instead of allowing the companies to increase the existing maximum retail
prices, they have been allowed to increase the prices on the leader brand
(one which has highest price in its particular therapeutic segment).
One such raise had also been allowed in June 2000 when 8 to 10 per cent
increase was allowed in the essential and non- essential categories
respectively.
Explaining the leader price strategy, Dr Mirza said if the price of a
controlled drug was Rs20 per 10 tablets and in the same therapeutic
category, the highest price (leader) was Rs100 per 10 tablets, then instead
of calculating 3 per cent of Rs20 which would be at Rs0.6 while the price
would become Rs20.6, the new policy allows calculation to be based on Rs100,
which would be Rs3. This when added to Rs20 would make it Rs23 after the
increase and would actually be a raise of 15 per cent on Rs20 rather 3 per
cent.
Dr Mirza said that he was not sure if the cabinet had actually meant the
price increase to be based on the leader price claiming that the concept of
the leader price was technically false.
He said that there was a need to reduce the prices as they were already very
high.
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