The argument of the drug manufacturers and distributors is that the quality of drugs will be poor if only cheap drugs are sold, while the pharmacy association is in favor of adjusting the prices of drugs.
After the government prepares to adjust the price of medicine, manufacturers and distributors have protested. After the Drug Price Policy Suggestion Committee formed by the Ministry of Health and Population recommended setting the price of all drugs in the list of "Nationally Essential Medicines", drug manufacturers' association, drug dealers' association, Nepal Importers' Association and others protested. The pharmacy association is in favor of adjusting the prices of medicines.
In order to prepare the basis of long-term policy on pricing of medicines, to solve shortages and price disparities and to make access to medicines accessible, the Ministry of Health decided Dr. A drug price policy suggestion committee was formed under the coordination of Poshraj Pandey. The
committee submitted its report to Health Minister Pradeep Paudel on 27th June. Then last Friday, drug manufacturers and distributors protested by tying a black belt at the drug administration department.
Health Minister Paudel discussed with the Medicines, Health Services and Health Materials Concerns Committee on Sunday, which includes associations of drug manufacturers and distributors. After Minister Paudel promised to address the demand in the discussion, the agitation was postponed for 15 days, according to the concerned committee. The
committee has 10 organizations including pharmaceutical manufacturers' association, pharmaceutical traders' association, Nepal importer's association. They argue that the quality of medicines can be poor if they sell only cheap medicines without paying attention to the product price. Mahesh Prasad Pradhan, president of the Pharmaceutical Manufacturers Association, has expressed his opposition to the price adjustment of the medicine so that it is lower than the cost.
"If there is a situation where medicine has to be sold at less than the production price, indigenous pharmaceutical industries cannot operate," he said. Pradhan complains that he was not heard even when he sat in the suggestion committee. The policy that the government is trying to set for drug pricing is not customer-oriented. Consumers cannot get quality medicine, he said.
dr. The Pandey-led committee has suggested implementing a pricing system based on the pharmaceutical industry and the nature and characteristics of manufactured drugs, the availability of data on drug production and import and consumption, the institutional capacity of the drug administration department and the experience of drug price regulation in South Asian countries. The
committee has also recommended a system to maintain the maximum retail price of medicines that have been priced and are on the national essential list, and the prices of imported and domestically manufactured medicines that have not been priced. The committee also recommends establishing a drug price unit in the Ministry of Health to collect data and information on drug demand, supply, price, import, export and supply chain. The
committee has recommended the formation of a working group consisting of experts for price determination and adjustment of medicines. The committee has pointed out that there are legal, technical and institutional weaknesses in drug pricing and adjustment. It is mentioned in the report that although the department has the right, it has not been implemented due to lack of laws, procedures and standards.
"Due to the lack of participation of producers, lack of transparency, and lack of public trust in the pricing committee, the risk of prioritizing commercial interests over the interests of consumers has increased," the report said, "Due to the lack of separate units and skilled manpower, irregularity and inequality have been observed in pricing and adjustment."
The Nepal Pharmacy Association has emphasized that the Ministry of Health should implement the reform of the pharmaceutical and health sector. In a statement issued by Yuvraj Bhusal, president of the association, and Suvarnaraj Pant, general secretary, it is said, "Drugs are a sensitive issue related to the health and life of citizens, so the state should have a responsible and effective role in its price, quality and supply system."
Ministry of Health spokesperson Dr. Prakash Budhathoki commented that it was unfair to protest when the report of the committee was coming. We are in the process of studying the report of the committee. We are consulting with experts," he said. "We are surprised to see that the report has not been made public.
The Drug Administration Department set the prices of 22 types of drugs in 2064 and 96 in 2073. Since then, there has been no adjustment in drug prices. According to the decision of the Drug Price Consultative Council, the report submitted by the committee formed in 2075 was not implemented.
In Nepal, 122 pharmaceutical companies have received a letter of recommendation from the department, but only 89 of them have been producing. According to the department, 21 thousand 14 brands of medicines are registered in Nepal. Among them, 12,500 medicines are produced in the country and the rest are imported from abroad.
In 2023/024, it is estimated that 45 billion worth of medicine was imported. According to the National Health Account, more than 80 billion is spent on medicines and health materials in recent years. Half of this is supplied by the domestic industry and the rest depends on imported drugs and materials.
