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High prices of pharmaceuticals: A bitter pill for consumers

20 Nov 2021

  • Dollar crisis has hit pharmaceutical prices this year: Consumers 
  • Pharmacies have not increased prices; following MRPs: ACPPOA 
  • Health Ministry to meet pharma companies to address price issues
By Maheesha Mudugamuwa Consumers battling to secure their daily essentials amidst the rising cost of living have been struck another blow due to a drastic increase in the prices of some medicines. According to pharmaceutical industry experts, the prices of all imported medicines that are not controlled by the Government have been increased during the year in parallel to the country’s depreciating rupee. Meanwhile, customers claimed that they were struggling to secure essential prescribed medicines, especially medicines required by those suffering from non-communicable diseases (NCDs). Consumers explained that the prices of at least 40% of drugs in the market had increased drastically, although the Government controlled the prices of over 60% of the remaining portion of drugs. Last August, the Government imposed maximum retail prices (MRPs) on the latter.  “Now, we can’t buy the medicines prescribed by the doctors, as the prices have gone up drastically. We can’t buy even half of the medicine that we purchased for the same amount last year. We don’t know what to do because we must purchase the medicine, but how can we afford it?” Gayan Perera, a 37-year-old consumer from Kiribathgoda, told The Sunday Morning. Perera has four family members for whom long-term medication has been prescribed. The medical expenses of his family had doubled now, he said. “Prices of all food items have been increased. Also, the gas prices and other essentials have gone up too. While struggling to get all these essentials, we’re finding it really difficult to get the essential medicines at the existing prices,” he lamented. In August, Health Minister Keheliya Rambukwella, issuing an extraordinary gazette notification, amended the Medicines (Ceiling on Prices) Regulations of 2019 published in the Gazette Extraordinary No. 2123/35 of 15 May 2019. The amendment increased the maximum retail prices (MRPs) of 60 essential medicines and 38 intraocular lenses/lenses with delivery system (preloaded provided with cartridge) by amending the Medical Devices Pricing Regulations No. 1 of 2017 published in the Gazette Extraordinary No. 2006/45 of 17 February 2017, as amended by regulations published in the Gazette Extraordinary No. 2114/54 of 15 March 2019. Furthermore, the MRP of two selected medical devices – the blood glucose monitoring system and test strips for the blood glucose monitoring system – had also been revised by amending the Medical Devices (Pricing) Regulations of 2018 published in the Gazette Extraordinary No. 2086/37 of 31 August 2018 as amended by regulations published in the Gazette Extraordinary No. 2114/54 of 15 March 2019. The last price revision was made in May 2019 when the exchange rate was at Rs. 178 per US dollar. Pharmaceutical companies have been requesting for a price increase in all essential drugs that is commensurate with the fall of the value of the rupee. An official request was made by the Sri Lanka Chamber of the Pharmaceutical Industry (SLCPI) to the National Medicine Regulatory Authority (NMRA) to raise the prices of essential drugs by 9% due to the rupee depreciation seen since May 2019. The pricing committee of the NMRA then recommended the recent price revision.  Price controls on pharmaceuticals were introduced in 2016 through a gazette notification issued by the Health Ministry, reducing the prices of 48 pharmaceutical drugs that were mainly prescribed for NCDs such as diabetes, high blood pressure, etc. under the National Drug Regulation Authority Act, No. 5 of 2015. The Government at present controls the prices of 73 drugs. When contacted by The Sunday Morning, All Ceylon Private Pharmacy Owners' Association (ACPPOA) President Chandika Gankanda said pharmacies had not increased the drug prices, and most of the essential drugs identified by the Government for which MRPs have been imposed, were available at prices below the MRPs. “We can assure that pharmacies are selling drugs adhering to MRP rates, and as for the drugs for which MRPs are not given, the pharmacies are selling those at the rates mentioned on the package,” Gankanda stressed. He also requested the public to inform the ACPPOA about any pharmacy that sells the drugs at higher rates. “We will look into those pharmacies,” he said. Elaborating further, Gankanda said only a 9% increase was approved by the Government in August, and after that, no revision had been made as yet. “The prices of the medicines for which the price control is not in effect have been increased in parallel to the country’s dollar rate, and the pharmacies receive those drugs at a specific rate and sell at those rates,” he added. The country’s pharmaceutical expenditure as of 2017 (hospital and pharmacy medicine sales at consumer prices) is said to have reached a value of $ 642 million.  With the Covid-19 pandemic impacting the country last year, industry experts predict that the expenditure might now be double the previously estimated amounts, especially with the ongoing Covid-19 vaccination programme. However, earlier, it was estimated that by 2022, the market would reach a value of $ 787 million, posting a five-year compound annual growth rate (CAGR) of 4.1%. Major sources of drug imports, according to 2017 data, include India (49% of total drug imports), Pakistan (8%), the US (3%), Switzerland (3%), France (4%), the UK (3%), and Bangladesh (4%). When contacted by The Sunday Morning, Health Minister Rambukwella said the Ministry would discuss the issue with pharmaceutical companies to evaluate the existing situation and the allegations, and would take appropriate action to provide relief to the public.   Meanwhile, NMRA Food and Medicines Inspection and Legal Action Division Head Amith Perera told The Sunday Morning that the authority could take action against the pharmaceutical companies selling medicines above the MRPs that had been gazetted by the Government in August. “As for the rest of the medicines that had not been gazetted, the pharmaceutical companies cannot increase the prices arbitrarily, as they should inform the NMRA before such an increase,” he said. When asked whether the NMRA could take action against such companies, Perera noted that the authority couldn’t take action against them, but stated that the companies should seek the authority’s consideration


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