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27 April 2024

Syndicate rules the roost in medicine market

Sanjay Adhikari Rony

Published: 07:40, 24 March 2024

Syndicate rules the roost in medicine market

Photo : Messenger

The health sector of the country is under the control of pharmaceutical companies, apparently wielding their influence akin to that of a syndicate. From government and private hospitals, clinics, and diagnostic centres to medicines, they have single-handedly dominated everything. Consequently, the cost of treatment, including medicines, has skyrocketed, while uncertainty looms over receiving appropriate care.

It has come to light that the prices of commonly used medications such as paracetamol, fever reducers, high blood pressure medication, skin treatments, and anemia medications have surged in the market. Additionally, the prices of pain relievers and antibiotics have escalated. Most medicines have seen their prices more than double.

Following the shock of the Corona epidemic, pharmaceutical companies lobbied the government to raise medication prices, and their efforts bore fruit. However, this has emerged as a new burden on the populace.

According to relevant sources, medication prices have been steadily rising over the past 3-4 years. Medication prices in the country are determined in two ways—by government decree and by the pharmaceutical companies themselves. Once set by the company, the price remains immutable, as the company employs various strategies to secure approval for it.

The Directorate General of Drug Administration sources reveal that a committee was tasked with setting medication prices in the country until 2015-16. However, seven years later, no new committee has convened. While the drug administration purportedly scrutinises proposals for price increases, it routinely approves proposals submitted by companies.

Conversations with various hospitals, drug companies, and victims reveal that not only have prices of essential or domestically produced drugs surged, but also those of foreign drugs. Manufacturers exploit perceived shortages to hold customers hostage, selling drugs at prices many times higher than prescribed. For instance, Actrema injection, commonly used in ICU treatment, is sold for Tk 21,000 to Tk 40,000, yet during artificial crises, its price inflates to Tk 60,000 to Tk 80,000.

Moreover, though there is a requirement to list the price in Bangladeshi Taka on imported medicines, this rule is frequently flouted. Foreign drugs are often hoarded, then sold at exorbitant prices during supposed shortages, compelling patients to purchase them.

A director from the Directorate General of Drug Administration, who did not want to be named, told The Daily Messenger, “The government sets the price for 117 drugs. Additionally, there are approximately 42,000 drugs in the country, with their prices determined by the respective company owners. We endorse the prices set by them after verification. MRP and IP are the two pricing methods for drugs. However, companies are raising drug prices using various arguments, and there's little we can do about it.”

Monir Ahmed, the managing director of Asiatic Laboratories, told the Daily Messenger about the surge in drug prices, “Over the past few years, raw material prices for all types of drugs have risen in the international market. Additionally, the country's dollar crisis has exacerbated the situation. Consequently, the production costs of all types of drugs have increased, leading to price hikes.”

Professor ABM Faroque of Dhaka University’s Department of Pharmaceutical Technology told The Daily Messenger, “Rising drug prices pose a barrier to access for the common people. The Directorate General of Drug Administration lacks control over these matters and is unlikely to gain it. Except for 117 medicines, prices are determined by companies. Stakeholders merely observe; they lack the authority to intervene in the prices set by companies. If drug prices were regulated in line with the 1982 drug policy, it would benefit the common people.”

He further said, “In any country globally, apart from essential drugs, the government typically determines drug prices, following the World Health Organization's guidelines. This was also outlined in our country's 1982 drug policy. However, due to pressure from drug companies in 1994, it was decided that the government would set prices for 117 drugs, leaving the rest to the companies. This is termed indicative pricing and is an anomaly not seen elsewhere.”

He stressed the need for the establishment of a committee comprising government representatives, experts, ordinary citizens, and patients to ensure accountability within the Directorate General of Drug Administration and related offices.

Notably, under the Drug Control Ordinance of 1982, the government held sole authority to regulate the price of any drug. However, on February 26, 1994, as per the Ministry of Health and Family Welfare, the pricing of non-essential drugs was delegated to the manufacturers. Exploiting this directive, companies have been increasing prices at their discretion.

In this regard, Golam Rahman, president of the Consumers Association of Bangladesh (CAB), told The Daily Messenger, “Regrettably, it's true that domestic companies are engaged in a sort of price escalation competition; however, the role of the Directorate General of Drug Administration in this matter is far from satisfactory. Strict adherence to the 1982 drug policy would protect the interests of both patients and manufacturers. The government should take effective action in this regard.”

He also said, “Medication is no longer merely a service; it has transformed into a primary business tool, with the most glaring example being the unscrupulous manipulation of medicine prices. This manipulate must cease for the sake of the numerous common patients in the country. Since price determination falls under the jurisdiction of the Drug Administration they should actively participate in establishing reasonable drug prices, ensuring accessibility for the country's populace. However, in reality, pharmaceutical companies have morphed into a syndicate, dictating prices of essential medicines.”

Meanwhile, allegations persist that drug companies and doctors engage in serious infractions, such as flouting government regulations by exchanging costly gifts. Companies purportedly offer doctors 10 percent of the drug price, in addition to lavish gifts. Consequently, these expenses are passed on to the consumer through inflated drug prices.

Messenger/Disha

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