Govt Consider Changes To DRAP Drug Pricing Formula

The government is contemplating modifications to the Drug Regulatory Authority of Pakistan's (DRAP) drug pricing system to enhance oversight of escalating medicine prices and shield consumers from excessive costs. Federal Minister for Economic Affairs and Establishment Division, Senator Ahad Cheema, instructed the Ministry of National Health Services and DRAP to swiftly reassess the present pricing framework, encompassing the Hardship Policy and the composition of the DRAP Policy Board.

Cheema emphasized that the existing mechanism for determining medicine price hikes necessitates a thorough examination. He tasked DRAP with implementing stricter oversight and impartial evaluations to prevent cost pressures from being directly imposed on consumers via augmented medicine prices. The minister also mandated officials to finalize revised regulations for the Hardship Policy, asserting that it should offer aid exclusively in legitimate scenarios and should not serve as a mechanism for corporations to shift disproportionate commercial expenses onto patients.

Cheema explicitly directed that a Health Economist and a Public Health expert be incorporated onto the DRAP Policy Board to bolster expertise and evidence-based decision-making. DRAP and the Ministry of National Health Services concurred with the suggested adjustments. The meeting also deliberated on importer and retailer margins.

Cheema stated that importers benefiting from tax concessions or other government support under the Hardship Policy should also contemplate rationalizing their margins instead of passing the total expense onto consumers. DRAP was tasked with examining prevailing margins, which may exceed 40 percent in certain instances, and proposing modifications under the revised guidelines.

The meeting also reviewed pricing methodologies for both originator and existing brands. DRAP officials disclosed that originator brands currently employ international reference pricing predicated on prices in neighboring nations and other pertinent countries. Cheema directed DRAP to introduce independent verification of international reference prices and fortify inspections within the comprehensive drug pricing system.

Cheema emphasized that drug pricing decisions directly impact millions of households and that the regulatory framework must strike a balance between the pharmaceutical sector's viability and the affordability of medicine and consumer safeguarding.