The National Medicines Regulatory Authority (NMRA) is taking decisive steps to address the issue of inflated drug prices and unethical practices in the pharmaceutical supply chain. Reports have revealed that local suppliers, in addition to paying bribes to doctors to promote certain drugs, have been selling medications to the government at significantly higher prices compared to regional and local market rates.
To tackle this issue, the NMRA is preparing to engage directly with global drug manufacturers to verify actual drug prices. This move comes after the authority identified substantial discrepancies between the prices charged by local suppliers (middlemen) and the prices in regional markets. NMRA CEO Sawin Semage stated that the agency is also speeding up the approval process for new registrations of suppliers and manufacturers to break the monopolies held by certain companies over specific drugs.
Some applications for new registrations have reportedly been delayed at the NMRA for an extended period, creating bottlenecks in the supply chain. However, progress is being made. For instance, a local manufacturer has recently been granted a license to produce papaverine hydrochloride injection, a critical drug for heart patients. This decision follows revelations that the drug had been sold to the public health sector at exorbitant prices ranging from Rs. 34,000 to Rs. 76,500 per bottle since 2018. The drug was previously imported by Yaden International (Pvt) Ltd, which sourced it from Indian company Mercury Laboratories Ltd.
The issue came to light when a member of the Technical Evaluation Committee pointed out the price discrepancy during a recent bid submission by Yaden International. As a result, the tender was recommended for cancellation, leading to a drastic reduction in the price of the drug to Rs. 370 per bottle. Similarly, the price of promethazine oral solution, used to prevent allergies in children, has been reduced from Rs. 1,200 to Rs. 150 per bottle.
The NMRA has implemented its own internal benchmarking and regional pricing system to ensure fair pricing. The authority has also identified that some drugs are priced higher due to “promotional” costs included in the rates offered by manufacturers. These costs often involve payments to doctors for promoting specific drugs. The NMRA has declared that it will no longer permit such practices, aiming to eliminate unethical influences on drug pricing and prescription practices.
This crackdown on overpricing and corruption in the pharmaceutical sector is expected to bring significant relief to patients and the healthcare system. By fostering competition and ensuring transparency, the NMRA aims to make essential medications more affordable and accessible while maintaining high standards of ethical practice in the industry.
