Manufacturers demand price review of govt-controlled drugs
Thursday, 27 September 2007
Raihan M Chowdhury
Bangladesh Association of Pharmaceutical Industries (BAPI) has demanded the price review of government controlled drugs produced by local manufacturers that has not been carried out since 1994.
"The manufacturers of controlled categories are facing huge losses due to increase in prices of active pharmaceutical ingredients in the international market," a BAPI source told the FE Tuesday.
The Directorate of Drug Administration controls the prices of 117 locally produced essential drug items in the country.
"According to the pricing policy, although the government is supposed to review the prices of the controlled drugs every year based on inflation and changes in foreign currency exchange rates, but it has not reviewed the prices of since 1994," the BAPI source said.
Prices of pharmaceuticals products are seldom controlled by governments elsewhere except in Bangladesh and India, the source added.
In Bangladesh, the source said, such control and pricing of drugs has discouraged the local manufacturers to produce some essential medicines the selling price of which does not even cover their cost of production. This has encouraged illegal entry of those products and the patients are paying exorbitant prices.
Citing the example of Phenobarbitone, the source said the approved price of the item is Tk 0.30 per tablet while its equivalent price is Tk 1.92 in India. Bangladeshi patients are buying the contraband Indian substitutes of the same at Tk 5 as it is not available from local producers.
"It is clearly evident that such irrational control of prices has resulted in losses not only to the manufacturers but also to the government of Bangladesh and more importantly the poor patients of the country," a drug market operator said.
The pharmaceutical sector attained a lower growth at 4.08 per cent in 2006 as against 17.50 per cent in 2005.
"The lower growth rate of national pharmaceuticals market may be attributed to various factors such as lower public expenditure on health care and non-review of prices of controlled drugs," the BAPI source felt.
The Bangladesh pharmaceutical industry now owns some 95 per cent of the domestic medicine market worth $ 503 million.
According to available statistics, there are 164 pharmaceutical companies in the country. Of them, about 25 companies are relatively larger and they produce high quality medicines.
A total of 25 companies are listed in the pharmaceuticals and chemical sector on the Dhaka Stock Exchange. Their total share capital is Tk 2.99 billion.
Bangladesh Association of Pharmaceutical Industries (BAPI) has demanded the price review of government controlled drugs produced by local manufacturers that has not been carried out since 1994.
"The manufacturers of controlled categories are facing huge losses due to increase in prices of active pharmaceutical ingredients in the international market," a BAPI source told the FE Tuesday.
The Directorate of Drug Administration controls the prices of 117 locally produced essential drug items in the country.
"According to the pricing policy, although the government is supposed to review the prices of the controlled drugs every year based on inflation and changes in foreign currency exchange rates, but it has not reviewed the prices of since 1994," the BAPI source said.
Prices of pharmaceuticals products are seldom controlled by governments elsewhere except in Bangladesh and India, the source added.
In Bangladesh, the source said, such control and pricing of drugs has discouraged the local manufacturers to produce some essential medicines the selling price of which does not even cover their cost of production. This has encouraged illegal entry of those products and the patients are paying exorbitant prices.
Citing the example of Phenobarbitone, the source said the approved price of the item is Tk 0.30 per tablet while its equivalent price is Tk 1.92 in India. Bangladeshi patients are buying the contraband Indian substitutes of the same at Tk 5 as it is not available from local producers.
"It is clearly evident that such irrational control of prices has resulted in losses not only to the manufacturers but also to the government of Bangladesh and more importantly the poor patients of the country," a drug market operator said.
The pharmaceutical sector attained a lower growth at 4.08 per cent in 2006 as against 17.50 per cent in 2005.
"The lower growth rate of national pharmaceuticals market may be attributed to various factors such as lower public expenditure on health care and non-review of prices of controlled drugs," the BAPI source felt.
The Bangladesh pharmaceutical industry now owns some 95 per cent of the domestic medicine market worth $ 503 million.
According to available statistics, there are 164 pharmaceutical companies in the country. Of them, about 25 companies are relatively larger and they produce high quality medicines.
A total of 25 companies are listed in the pharmaceuticals and chemical sector on the Dhaka Stock Exchange. Their total share capital is Tk 2.99 billion.