Drug prices feared to gain further hike in DRA regime

international | rights, freedoms and repression | news report Friday October 20, 2006 17:29 by Qasim Rajpar - Daily Awami awaz

The government's move to introduce Drug Regulatory Authority (DRA) would bring Pakistan's pharmaceutical sector into a new pricing regime where drug prices would be controlled by the producers and not by the regulators.

LAHORE, October 20, 2006: The government's move to introduce Drug Regulatory Authority (DRA) would bring Pakistan's pharmaceutical sector into a new pricing regime where drug prices would be controlled by the producers and not by the regulators.

This was said in a press conference here at Press Club on Friday, which was arranged by TheNetwork for Consumer Protection, a civil society advocacy group working in public health and consumer protection for the last 14 years. Tauqeer Mustafa, the Pharmaceutical Coordinator of the group addressed the press conference. Tahir Mehdi, Advocacy Head of the organization was also present on this occasion.
Tauqir Mustafa said that a detailed analysis of the proposed DRA Act and framework of the new regulatory authority suggests that the new authority gives maximum yet totally undue and unjustified leeway to the manufacturers in pricing. "The drugs are distributed in five categories and separate mechanisms for price control would be working. With the exception of WHO's Essential Drugs list, all other four categories are left almost unregulated and at the industry's behalf. The self-certification for pricing and third party certification for quality is what the authority's draft is offering, it simply means that quality drugs would be sold at higher prices and availability of essential drugs (direly needed in Pakistan) to all and sundry would not be ensured", he elaborated.

Tauqir while questioning the need to establish new authority termed the move to introduce a new authority as unnecessary and a bid to divert the attention of people from real issues of health sector. "The loopholes in the framework of the authority show that the new body would privatize the pharmaceutical regulation in the country", he held.

"The draft of the proposed body reveals that the new authority is being devised on the lines that it would result in further mess in terms of further price hike in the chaotic pharmaceutical sector. It (framework of proposed body) invites more intervention from industry and less regulation from the state", he said.

"There is nothing new in proposed Authority. Instead of providing any measures to improve regulation it seems to serve the pharmaceutical industry at the cost of public interest", said Tahir Mehdi.
"It seems that government wants to register some activism in health sector in the context of Supreme Court's suo moto on spurious drugs and a growing awareness among masses about the dismal picture in the pharma sector and the DRA rhetoric provides enough space to trumpet the steps", he observed.

"The Drug Control Organization, which is being replaced by the new authority, could have been used effectively if the rules and provisions provided in the Drug Act of 1976 were implemented in letter and spirit", he remarked. "It (framework) does not offer substantial changes in the existing situation on which the Honorable Supreme Court has already shown much concern. The proposed law is flawed and does not fulfill the promises made to the Honorable Court. It appears that the changes are aimed at some convenient administrative reshuffling and will at best bring only superficial and cosmetic changes", Mehdi continued.

"Health sector should not have been dealt with like telecom or power sector where the consumers' grievances are shown to be addressed through claims and farce hearings. In health the consumer interest should be given top priority, given its importance, and no room should be provided to powerful industry players to enhance their influence in decision making", he said.