Medicine prices going up consistently since deregulation

KARACHI: Prices of medicines have been registering hike since deregulation policy introduced by the last caretaker government, experts and officials said on Tuesday.

They said most drugs, especially those for chronic ailments, have been rendered unaffordable for the public. The ‘non-elected’ caretaker government of Anwaar ul Haq Kakar had approved the deregulation policy in February 2024 after the Ministry of National Health recommended it, allowing pharmaceutical companies to independently raise prices for non-essential drugs excluded from the National Essential Medicines List (NEML).

The deregulation policy was intended to assist the struggling pharmaceutical sector, which faced skyrocketing production costs, by ensuring the availability of medicines that had become financially unviable.

“Prices of medicines are increasing on a monthly or even weekly basis. Every time a patient comes to buy medicines, their bill is higher than the last time,” said Mudassir Ahmed, manager at a major pharmacy chain.

He highlighted that prices of drugs for chronic ailments like diabetes, hypertension, cardiovascular diseases, and mental health conditions are rising relentlessly, as are those for common cold and flu medications.

Pharmacy owners are also feeling the impact. Tariq Hussain, a medical store owner, claimed many patients are now rationing their medicines due to high costs. “I know several people who are taking 15 or 20 tablets instead of the full course of 30 because they can’t afford it. They’re asking us for more discounts, which we cannot offer,” he said. Antibiotics, a staple item for pharmacies, have also seen steep price hikes, leading to difficulties for patients in purchasing them.

Renowned cardiologist Dr Akram Sultan corroborated the dire situation, stating that patients are increasingly requesting doctors to prescribe fewer medications due to financial constraints.

“Patients are bearing the brunt of rising costs at every step, from transportation and doctor fees to tests and medicines. The overall healthcare expense is becoming unbearable,” said Dr Sultan, who is also the Coordinator of the Pakistan Cardiac Society (PCS) for Karachi.

Dr Sultan referenced remarks by Prof Dr Bilal Mohyuddin, convener of the 53rd Cardiocon 2024, who noted that price hikes exceeding 100 percent have been observed for numerous medications in Pakistan. Prof Mohyuddin highlighted specific cases, including a 218 percent increase in the price of the antispasmodic drug drotaverine and significant hikes in antibiotics and common cough syrups.

The absence of a national health insurance system further exacerbates the problem, as most healthcare expenses in Pakistan are out-of-pocket. “The lack of financial support mechanisms means that these price hikes are devastating for patients who rely on daily medication for survival,” Dr Sultan emphasised.

Pharmaceutical industry representatives, however, defended the price increases. Tauqeer Ul Haq, Chairman of the Pakistan Pharmaceutical Manufacturers Association (PPMA), acknowledged that the deregulation policy implemented in February 2024 allowed companies to benefit from May onwards.

According to IQVIA, an international monitoring firm, the pharmaceutical sector in Pakistan recorded a growth of 21.79 percent in the third quarter of 2024.

Haq admitted that prices of some medicines have increased significantly but argued that these were “hardship cases” where costs needed to be adjusted to maintain financial viability. He further claimed that competition among companies was forcing many to keep prices competitive, although others had taken advantage of the deregulation policy.

“We are trying to convince pharmaceutical companies through the PPMA platform to act responsibly. Taking undue advantage of deregulation could lead to policy reversal, which would be disastrous for the industry,” Haq warned.

Officials at the Drug Regulatory Authority of Pakistan (DRAP) said that they would begin monitoring price hikes by the pharmaceutical industry in the coming days after pharmaceutical companies refused to provide details to DRAP regarding recent price increases, despite the regulator’s request for updates.

“Pharmaceutical companies seem to believe they are now free to act without oversight following the deregulation policy, but this is not the case. The government and the regulator cannot leave people at the mercy of profiteers. There are several actions we can take to address this issue,” a senior DRAP official told The News.

The official, speaking on condition of anonymity, claimed that pharmaceutical companies had pledged to invest in obtaining international certifications for their manufacturing plants and improve good manufacturing practices once allowed to determine medicine prices independently. “Unfortunately, they have miserably failed to honor their commitments,” he added.