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Drug price hike essential to avoid quality cuts: NMRA
The National Medicinal Regulatory Authority (NMRA) last week defended its move to increase the price of pharmaceutical drugs by five per cent and said that the move was warranted in view of the fluctuating US dollar.
NMRA, Chief Executive Officer, Dr. Kamal Jayasinghe said that the pharmaceutical industry has been requesting an increase in the price of drugs for several months citing the fluctuating dollar exchange rate.
Accordingly the Ministry of Health (MOE) through an amendment to the NMRA Regulations No.2 of 2016 introduced a new price ceiling for 48 pharmaceutical drugs. The new price regulation will come into effect from December 14, 2017.
Dr. Jayasinghe said prices of drugs were reduced remarkably in October 2016 to alleviate the financial hardship encountered by patients in the lower economic strata.
However, he said that the dollar had increased by 11 percent in the last few months and it was necessary to pay heed to the pharmaceutical industries’ request. “We found the industry had reasonable grounds to ask for the increase. It was justifiable,” he said.
The request from the industry was for 10 percent increase for a fixed period of six months but the committee of experts had decided on a 5 percent increase for a period of one year. The new ceiling on prices will remain for the next year after which the market will be reviewed and changes made depending on the existing dollar rate.
“The prices may even come down,” he said.
Meanwhile the Pharmaceutical Chambers said that they were looking at a pricing mechanism that would entitle the industry to increase prices at regular intervals.
President Shyam Sathasiwam said that without a long term pricing mechanism there is a crisis where the quality of pharmaceuticals may be compromised.
He said static prices will dampen new products entering the market and even patients who have the purchasing power cannot buy them. “A clear and sustainable pricing method is needed,” he said.