- 42 of 52 proposals concern new strengths of existing medicines.
- Lower import costs raise questions over influenza vaccine prices.
- Revised recommendations to go to federal cabinet for final approval.
ISLAMABAD: Federal Minister for Climate Change Dr Musadik Malik said the Drug Regulatory Authority of Pakistan (Drap) had been asked to reassess some of its 52 drug pricing proposals, including the proposed hike in influenza vaccine prices, following a detailed review that uncovered inconsistencies in pricing calculations and reference costs.
Malik, who was tasked by Prime Minister Shehbaz Sharif with reviewing the proposals, told The News that he and his team held several rounds of discussions with Drap officials to examine the assumptions, reference prices and calculations used to determine the proposed maximum retail prices (MRPs).
He said the objective was to ensure that medicines were priced in accordance with Drap’s own pricing policy while protecting patients from unjustified costs and ensuring that pharmaceutical companies could continue supplying essential medicines.
The review covered 52 drug pricing proposals, of which 42 relate to medicines already available in Pakistan but being introduced in different strengths. These are therefore largely not entirely new medicines but additional strengths of existing drugs requiring separate price approvals.
According to the minister, the detailed examination identified a few cases where the review team recommended revisions or further verification of the proposed prices.
The discrepancies included the use of inappropriate or insufficiently verified reference prices, incorrect application of the formula used to determine prices for different strengths of existing medicines, and instances where already registered generic prices had not been appropriately taken into account.
In some cases, applying the relevant provisions of Drap’s existing pricing policy resulted in recommendations for substantially lower prices, while others required verification of the reference product or alignment with established generic prices.
The minister maintained that the recommendations were not intended to impose arbitrary price reductions but to ensure that the proposed MRPs were based on accurate calculations, verifiable information and consistent application of the government’s approved pricing framework.
Separately, the review team also examined the proposed higher prices of seasonal influenza vaccines, including those marketed by multinational pharmaceutical companies.
During the examination, the team found that the landed cost reflected in the latest shipment was considerably lower, raising questions about the justification for the higher proposed retail price.
The minister said the latest import-cost information needed to be properly reflected in the pricing assessment, as the lower landed cost indicated that there could be room to reduce the proposed price without undermining the commercial viability of the product.
The development comes at a time when influenza vaccines manufactured by the two multinational companies have not reached the Pakistani market this season because of the continuing dispute over approval of their revised prices.
Malik stressed that the purpose of the exercise was to ensure that pricing decisions were fair to consumers while taking into account legitimate costs incurred by manufacturers and importers, including exchange rate fluctuations, inflation and changes in international reference prices.
He said Drap had been asked to revisit the identified discrepancies and submit revised recommendations based on the criteria discussed and agreed upon during the review.
The minister also emphasised the need to conclude the process without unnecessary delay, particularly where pending price approvals were affecting the availability of medicines and vaccines.
Once Drap completes the required revisions, the recommendations will be forwarded through the prescribed process for final approval by the federal cabinet.
The minister maintained that accurate and transparent pricing was essential not only to protect patients from unnecessarily high medicine costs but also to ensure the timely availability of medicines in the Pakistani market.