E-DRUG: Pharmaceutical Price Regulation in Sri Lanka
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[Here is some interesting correspondence on Pharmaceutical Pricing -- as
most readers of e-drug know, some form of Pharmaceutical Price
Regulation is very common (universal in Western Europe) and therefore
multinational companies accept it as a part of their business. It is
interesting to see how these manufacturers and their representatives
respond when it is proposed in developing countries. Moderator]
News Item:
The Island
Drug companies throw down the gauntlet - Price Control
November 23, 2011, 12:00 pm
By Don Asoka Wijewardena
Sri Lanka Chamber of the Pharmaceuticals Industry (SLCPI) yesterday
declared that it wouldn't accept price control under any circumstances.
It warned the government of dire consequences in the event of the
implementation of a price controlling mechanism.
The warning follows a meeting the SLCPI had with Health Minister
Maithripala Sirisena and Trade and Commerce Minister Johnston Fernando
on Tuesday (22) in Colombo.
The SLCPI yesterday called a special media briefing at Hotel Taj Samudra
to explain its position on the government's decision to control the
prices of pharmaceuticals.
The government alleges that the pharmaceuticals industry is making huge
unconscionable profits at the expense of patients.
SLCPI President Vish Govindasamy emphasised that the industry wouldn't
accept government intervention. Countering allegations that the industry
was making huge profits at the expense of the Sri Lankans, Govindasamy
said that prices of essential pharmaceuticals had been gradually
dropping over the years mainly due to healthy competition in the market.
In spite of the removal of price control six years ago, prices had not
escalated, Govindasamay said.
The SLCPI warned the government that in the event of price regulations
in the local market, reputed suppliers would quit the Sri Lankan market
thereby causing a shortage of essential pharmaceuticals. The SLCPI said,
"Competition will decrease due to the presence of a fewer number of
suppliers in the market and prices will increase, sending the State
health care expenditure up."
The Chamber warned that the ultimate loser would be the patient.
Caption (of the picture): From left to right Sri Lanka Pharmaceuticals
Manufacturing Association Director Ms. Marise Deckker, Sri Lanka Chamber
of the Pharmaceuticals Industry President Vish Govindasamy and SLCPI
Director Stuart Champon meet the media.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=39679
<http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=39679>
End of news item
.............................
Notes
1. Vish Govindsamy, the President of SLCPI, represents Swiss Biogenics
who represent Abbott Laboratories Ltd- USA/ Pakistan/India,Johnson
&JohnsonLtd -- USA/ India / Affiliates worldwide and many other major
multinational pharmas. (http://www.swissbiogenics.com/)
2. Ms Marise Decker represents Astron a local pharmaceutical
manufacturing company)
3. Stuart Champon is from GSK Sri Lanka.
Questions
1. Can representatives of Abbot laboratories who have been fined USD 100
million in December 2010 by the US Government for exorbitant pricing to
give kickbacks to doctors say that Pharmaceutical Pricing should not be
enacted? (Estimate of total Retail Pharma market in Sri Lanka -- USD340
million, the fine is one third of the pharma market of 20 million people).
2. GSK has been fined USD 3 billion (highest fine for a pharma company)
by the US government for misselling drugs and improper promotion -- can
they protest at Pharmaceutical Price Regulation? GSK is a major player
in the Western European Market where price regulation is universal. So
what they agree to in Western Europe is not good enough for Sri Lanka?
3. The CEO of GSK talks about affordability and providing medicines at
affordable prices to low-income countries. The Managing Director of GSK
Sri Lanka totally resists any price control and is a party threatening
to pull out of the market if price controls are introduced. Is it a
question of pious statements by HQ and "Business as usual" in the
developing world? Or the Managing Director of GSK (Sri Lanka) has not
read what the CEO has said?
................................................................................
There was a reply to the news item published in a letter to the Editor:
The Island Saturday December 3, 2011
Pharmaceutical Chambers, Traders, and No Game to Play
November 24, 2011, 12:00 pm
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=39712
Yesterday's statement by the President of the Sri Lanka Chamber of
Pharmaceutical Industries (SLCPI), a body made up exclusively of traders
parading as a "Chamber", on price control of pharmaceuticals, took me
back to my childhood. There was a rich boy who came to play cricket with
his bat and ball and when he was fairly bowled out, took the bat and
ball and went home. The other children continued playing with a commonly
owned bat and ball and when the rich boy returned, refused to play with
him and rejected his bat and ball.
Likewise, the SLCPI is threatening that "reputed" suppliers will pull
out of the market if price controls are introduced; the SLCPI should
learn from that rich boy, who is now a poor man.
As for the specifics of statement from the President of the SLCPI, there
are no "reputed" suppliers in Sri Lanka who are exclusive suppliers of
essential medicines; if these "reputed" suppliers pull out, the other
"non-reputed" suppliers will gladly step in and supply the extra
Essential Medicines that are necessary. Yes, just like the boys
continued to play with the commonly owned bat and ball.
I also wonder who these "reputed" suppliers are? Do they include the
multinational pharmaceutical company that had been fined USD 3 billion
by the US government for profiteering in 2011? And also the company who
held the previous record of USD 2.3 billion, again fined by the US
government? Could the President of SLCPI clarify?
So in summary, the traders in the Chamber should learn to play the game
and not threaten to take their bat and ball home; otherwise like the
rich boy, they might find themselves with a bat and ball but no game to
play (and poor too!).
<http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=39712>
Website of SLCPI
http://www.slcpi.org/
posted by
Dr. A.K. Sathyapalan
pharmawatch.3w@gmail.com