PHARMACEUTICAL companies and the Drug Regulatory Authority of Pakistan have been at odds over pricing methodology.
The secretary of the Ministry of National Health Services Regulations and Coordination, Ayub Shaikh, says he has put forward three proposals: reference pricing, cost-plus pricing system and average pricing.
While the Drug Regulatory Authority of Pakistan (DRAP) is bent upon imposing the average pricing method, the stakeholders — including representative bodies like the Pakistan Pharmaceutical Manufacturers Association (PPMA), the Pharma Bureau (PB) and the Pakistan Chemists and Druggists Association (PCDA) — have rejected the mechanism, terming it ‘arbitrary’.
The pharmaceutical sector stakeholders are vying for the reference pricing system, which they believe is transparent and justified. However, DRAP has expressed reservations over the reference pricing formula for want of availability of reliable data and the absence of an industrial base in the Saarc region, with the exception of India and Bangladesh.
The third option of ‘cost plus basis’ is believed to have been put aside as being too complicated, as it would have involved a ‘one-on-one’ engagement between the industry and DRAP. he ongoing tussle it to decide which system is mutually acceptable to both the parties concerned.
